Tesla (TSLA) shares are slipping lower today, hitting lows not seen since November 2020 as continued weakness takes its toll on Tesla bulls.
Tesla is down almost 3% in midday trade, dipping below $177 shortly after the opening bell. For the week, share are down over 9% — and a steep 50% year to date.
Weakness in Tesla shares follows news this week that Elon Musk has identified someone as a potential successor for his role as CEO at Tesla. The revelation emerged during a trial over Musk’s $55 billion pay package awarded to him in 2018.
Last week more disclosures by Musk of additional Tesla share sales rattled investors, as Musk continued to raise funds for his purchase of Twitter, which is now seen by analysts at a best a distraction for Musk, and at worst a larger financial mistake.
News of Musk’s Tesla stock sale last week, now bringing his total shares sold since announcing the deal to buy Twitter to nearly $19 billion, had Wedbush analyst Dan Ives throw in the towel on the stock, removing it from the firm’s “Best Ideas” list, and cutting its target to $250 from $300.
Tesla’s stock performance has also been hit recently by factors like a potential slowdown in China, which Musk admitted may be in the middle of a slowdown, as well concerns over demand weakening in U.S., as well as larger macro concerns over the global economy. New competition from the likes of traditional automakers like Volkswagen, GM, and Ford threatens the strong EV lead Tesla has in the U.S. and Europe.
As for today, beyond fundamentals there is possibility of technical selling hitting shares as well. Barron’s reports technicians like John Roque of 22V Research are advising to “sell any rally to $200,” and Katie Stockton of Fairlead Research warns the stock needs to hit $207 “to avoid a confirmed breakdown that would put next support near $180.”
The deadline for Tesla to hit Stockton’s $207 mark was today, and shares of Tesla have already dipped below her $180 support level.
Read More: Tesla shares slump, hit lowest levels since November 2020