To The Moon

A Closer Look at Recent Developments and Bearish Trend

$Tesla Motors(TSLA)$ has recently faced a series of challenges, both in terms of vehicle recalls and analyst sentiments, contributing to a current bearish trend in its stock.

Recall Notice

The National Highway Traffic Safety Administration (NHTSA) issued a notice that Tesla is recalling 159 Model S and Model X vehicles due to concerns about the driver airbag deploying incorrectly. This recall highlights potential safety issues, which can negatively impact investor confidence and contribute to downward pressure on the stock.

Analyst Coverage and Downside Risk

HSBC analysts initiated coverage on Tesla with a Reduce rating and a price target of $146 per share, implying nearly a 35% downside risk from the closing price. The analysts express concerns about Tesla's ambitious plans, particularly in areas such as Full Self-Driving (FSD), Dojo, and Optimus, with skepticism about the expected success by 2030. They also highlight Elon Musk's prominence as both an asset and a risk factor, indicating the market might be too optimistic.

Technical Analysis

TSLA Daily Chart

Looking at the daily chart, TSLA has been in a bearish trend since its last earnings report. The breakdown from a trendline support, established since the beginning of the year, signaled a shift in sentiment.

TSLA chart with Fib Levels

Recently, the stock retraced to the 0.618 Fibonacci level drawn from the recent high to low. However, this level faced rejection, resulting in a more than 5% dip yesterday.

Personally, I have a bearish stance on TSLA, which aligns with the recent technical developments. The rejection at the Fibonacci level suggests potential downside momentum. I am hoping the bearish trend continues and will consider adding shares at the 153-177 level.

It's crucial to acknowledge that my perspectives on TSLA are influenced by my existing bearish positions, indicating a potential bias in my analysis.

In conclusion, TSLA's recent challenges, combined with analyst downgrades and technical signals, contribute to the current bearish sentiment. Monitoring key levels and staying informed about news developments will be crucial for making well-informed investment decisions in this market environment.

Share your insights and opinions on where you think TSLA's price might be headed in the near future.

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Disclaimer: My views and insights are provided for informational purposes only. I do not offer financial or investment advice. It’s essential to conduct your research before making any financial decisions. The volatile nature of financial markets necessitates caution and due diligence.