Tesla (NASDAQ: TSLA) share price is having a massive pullback after a 110% price surge in 2023. The US equities, including Tesla stock, rallied big time in January this year. However, the markets started to correct in February. The release of the February CPI report gave markets some push, but this was offset by ongoing banking concerns.
Tesla stock started this week with a negative price action as the price dropped to fresh monthly lows of $163.1. However, the markets got a strong bounce as the US government assured the SVB and Signature Bank depositors of complete protection. On Thursday, NASDAQ: TSLA closed at $184.03, which is 13% above its Monday low.
Tesla Stock Dropped After Its Investor Day
Tesla Inc. held its investor day 2023 in its Texas Gigafactory. During the event, Tesla boss Elon Musk shared the company’s ambitious expansion plans along with the establishment of the Mexico Gigafactory. However, the investors appeared to be not satisfied as Tesla share price opened much lower the very next day.
Tesla stock is currently trading 8.4% below its March 1 closing when the investor day was held. Furthermore, the unveiling of an affordable EV by Volkswagen during its recent investor day has further deepened the concerns of Tesla holders. The new vehicle, which is being termed’ the EV for the masses’, will cost only $25,000. This price makes it the cheapest EV when compared to all the base variants of Tesla.
Tesla Share Price Forecast
Performing technical analysis on NASDAQ: TSLA reveals key demand and supply zones. On a daily timeframe, the price was making higher highs and higher lows until it made a lower low in March. This has left many traders believing that the rally could be already over.
Even though the price is trading much below the 200-day MA, it is still holding up above the 200-week MA. The 200MA on the weekly chart currently lies at $173.38. Tesla share price forecast will become extremely bearish if the price breaks below this level. This might result in a much bigger price drop below $150. During such a fall, the price can get some support from the $160 & $146 levels which are the 0.5 & 0.618 fib retracement levels.
