Tesla’s slide on the Nasdaq 100 index continued this Friday. This followed earlier comments by CEO Elon Musk said the company’s EV plant in Fremont, California had been closed for two days earlier this week as a result of shortages of parts. However, the factory has since reopened.
Tesla suffered a slump in share price this week, following Bloomberg’s reportage of a temporary suspension in the production of the Tesla Model 3. However, Tesla is not the only company suffering from a shortage of parts, as several top automakers have also had to scale down production due to a scarcity of auto parts.
Tesla stocks are also having to do with the rumours that the SEC was looking into Musk’s tweets about Dogecoin. Recall that a December 2020 tweet by Musk set the stage for hefty demand on Dogecoin, sending the crypto coin higher by more than 1000%. This would not be the first time Musk would face the SEC. The SEC had fined Musk in 2018 after he made a public comment which regulators felt would induce demand and influence the price of a stock in which he was heavily vested.
Tesla is down 0.95% on the day.
Technical Outlook for Tesla
The decline pushes Tesla further towards the 654.12 support level, with 601.39 and 541.18 lining up as additional support levels to the south if the price is able to break below that level.
On the flip side, a bounce on 654.12 allows for a push towards the 693.75 resistance, with additional upside targets at 743.70 and 784.76.
Tesla; Daily Chart