Tesla Stock Has Been Sideswiped by Twitter Issues. It Better Hold This Level.
Tesla stock is having a miserable end to the week. Yes, it's probably related to Twitter.
$Tesla Motors(TSLA)$
Investors took a while to digest better-than-expected jobs numbers, and they decided not to like them. The $S&P 500(.SPX)$ dropped 2% from its daily high and is now flat on the day.
Tesla stock isn't flat, though. It's now down 5.4%. The intraday swing is $20, or almost 10% of Thursday's closing price of $215.31.
There isn't much to pin the drop on, the only thing is $Twitter(TWTR)$
Regardless what people think of the layoffs -- either necessary to save an underperforming tech franchise, or surprisingly swift and severe -- they're having an impact on Musk's largest, publicly traded, company.
The hashtag "TwitterLayoffs" is trending in the U.S. with more than 54,000 tweets as of roughly 2 p.m. eastern time. Many of the tweets aren't friendly to Musk.
He rates Tesla stock at Buy with a $300 price target.
Musk was also tweeting on Friday, calling out a "massive drop" in ad revenue.
The chaos seems to be unnerving investors. Tesla stock is right at some technical support around $200 a share. Shares haven't closed below that level recently no matter what has happened, including weaker-than-expected third quarter deliveries reported in early October and more-hawkish-than-expected comments from Federal Reserve chair Jerome Power this week.
A drop below that level brings $180 into play, says Fairlead Strategies market technician Katie Stockton.
More potential downside isn't what Tesla bulls what to hear. They also don't want to think about their CEO being distracted by running Twitter.
Tesla stock is down about 11% for the week. The $Nasdaq Composite Index(.IXIC.US)$ is off about 7%.
Tesla stock is now down about 42% year to date. Auto and auto-parts stocks in the Russell 3000 Index are off about 37% year to date on average.
$Twitter(TWTR)$
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