Be Cautious When Trading Tesla Stock | $TSLA Technical Analysis

TL;DR

Tesla's stock experienced a significant drop from $700 to $550, but has rebounded to around $700. The company also increased pricing for some of its models.

Transcript

so what a week two weeks it has been for tesla i mean paul texted me a couple of days ago and he goes tesla's at almost 550 dollars a share after being at 700 a share was it let's take a look at their um 52 week so if we're looking at tesla just on march 8th three days ago this was at 563 dollars a share today it's basically let's call it 700 a sha... Read More

Key Insights

• 💄 Tesla's stock has experienced significant price fluctuations, making it challenging for traders to predict and trade.
• 🛄 The company increased the prices of some of its models, aiming to maximize profits and adjust for market conditions.
• 🖤 Tesla revamped its interior design, addressing one of the criticisms about its lack of updates in previous models.
• ✋ Tesla's high PE ratio indicates that investors have high expectations for its future performance.
• 🥳 Day trading Tesla can be risky due to its volatile price movements, with traders needing to carefully time their entry and exit points.
• 💁 Long-term investors may consider shorting Tesla if it breaks below the $560 support level and forms a bearish "M" formation.
• 🥳 Tesla's stock is currently trading around its 100-day moving average, which is an important level for hedge funds.
• 🥳 Traders should be cautious and look for dominant price movements when day trading Tesla, as smaller price fluctuations may not provide significant opportunities.

Questions & Answers

Q: Why did Tesla's stock experience a significant drop?

Tesla's stock dropped due to market fluctuations and investor sentiment. The stock market can be volatile, and Tesla's high valuation makes it susceptible to price swings.

Q: Why did Tesla increase the prices of some of its models?

Tesla increased prices to maximize profits and adjust for factors like inflation and production costs. It is common for companies to adjust prices based on market conditions.

Q: Did Tesla make any changes to its interior design?

Yes, Tesla revamped its interior design, adding features like the ability to charge smartphones in multiple locations and use smartphones as controllers for in-car entertainment.

Q: How does Tesla's PE ratio compare to other companies?

Tesla's PE ratio is 1093, which indicates that the stock is trading at a high multiple compared to its earnings. This suggests that investors have high expectations for Tesla's future growth.

Summary & Key Takeaways

• Tesla's stock price dropped from $700 to $550 but has since recovered to around $700.

• Tesla increased the prices of its Model Y long range and Model S Plaid, while keeping the price of Model Y the same.

• The company also increased the prices of its Model 3 standard range and Model 3 long range.