TSLA Stock Price and Forecast: Tesla slides over 4%, gives up $1,100 mark

Tesla corrects over 4% as Wall Street tumbles on hawkish Powell.
Volkswagen Group to become the EV market leader in Europe.
Tesla CEO Elon Musk takes a bite out of Apple.

Ivan Brian FXStreet

Update, November 2: TSLA shares clinched five-day highs at $1,172.84 on Wednesday and then corrected sharply amid a broader market sell-off. Fed Chair Jerome Powell’s calls for a hastened taper and Omicron covid variant woes sapped investors’ confidence, weighing heavily on the Wall Street indices. The re-emergence of Germany-based Volkswagen Group to become the electric vehicle (EV) market leader in Europe threatened the prospects for Tesla, causing the stock price to fall 4.35% to $1,095.

Tesla (TSLA) stock can do no wrong in 2021, and it avoided another market meltdown on Tuesday. While panic ensued following Powell's remarks about the taper and inflation, TSLA held firmly in the green. Equity indices finished nearly 2% lower on Tuesday, but Tesla shares closed at $1,144.76 for a gain of 0.7%. This was another strong outperformance for a stock that is up 62% year to date.

Contrast that with the Nasdaq, up 25 % for 2021, and the S&P 500, up a similar amount. 2021 has been the year of the electric vehicle, and Tesla paved the way for others to follow, notably Rivian (RIVN) and Lucid (LCID).

Our chart above shows the strong correlation between Tesla and Lucid with both stocks putting in a stellar second half for 2021.

Tesla (TSLA) stock news

Elon Musk is nothing if not entertaining, and on a slow news day for Tesla he livened things up by taking a pop on Twitter toward Apple.

Don’t waste your money on that silly Apple Cloth, buy our whistle instead!

— Elon Musk (@elonmusk) December 1, 2021

The Apple cloth he is referring to is a polishing cloth available from Apple for $19. Tesla recently launched a Cyberwhistle for what reason? Who knows, but it is currently sold out. At $50 for a whistle, it is not exactly cheap. It seems people just love a Tesla product. Apple was no slouch either on Tuesday as the stock set all-time highs.

Tesla (TSLA) stock forecast

The triangle formation still holds and a breakout is awaited. A triangle pattern is usually a continuation pattern, and Wednesday could provide the catalyst to break higher. The stock has consolidated well despite some strong headwinds: notably, Elon Musk selling a Cybertruck load of stock, and Tesla not performing well in a recent reliability test. It did however score highly on customer satisfaction, and investor satisfaction is also high given the strong performance. We expect more all-time highs this week even with the surrounding Omicron volatility. Our view will change if Tesla cracked below key support at $1,063.

TSLA 1-day chart

Previous updates

Update: TSLA shares are down 3.47% heading into the close, trading at $1,105 per share. US indexes changed course ahead of the close, trimming intraday gains and turning red after a solid start to the day. There was no particular catalyst behind the late decline, although investors remain cautious as they finish digesting the latest pandemic develops and comments from US Federal Reserve chief Powell, who called for speeding up tapering as soon as this month. At the time being, the Nasdaq Composite is down 198 points or 1.28%.

Update: TSLA shares are looking less likely to break $1,200 on Wednesday though the stock traded up to $1,172 on the open. Mid-session TSLA was up 1% at $1,156, while the S&P 500 rose 1.6%.

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Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

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