Tesla Stock Price Heads For The Most Critical Retest Of This Year
Tesla stock (NASDAQ: TSLA) price has been having a pullback since the EV giant announced its earning report last month. The stock is down 16% since then, now trading at $240. The move comes as a surprise, as the stock of the EV manufacturer had been one of the best-performing stocks in the first half of 2023.
The decline in the Tesla stock price can be attributed to the overall weakness in the Nasdaq 100. The index has dropped by 4% since the start of August, despite data from the US CPI being better than expectations. Following the same footsteps, the S&P 500 has also fallen 3% since the start of August.
Tesla Under Investigation After Deadly Crash in Virginia
Tesla is under investigation after a fatal crash involving a Model Y which used its partially automated driving system. This is the 35th crash related to Tesla’s Autopilot system. If the investigation concludes that the Autopilot system was at fault, it might significantly impact the company’s stock price.
In other news, the CFO for Tesla has recently stepped down after a stint of 13 years. The company welcomed Vaibhav Taneja as the new CFO. Both individuals also sold their shares in the EV giant before making this transition. This news has also contributed to the downward pressure on the stock price.
Tesla Stock Price To Retest $240
The NASDAQ: TSLA stock price chart shows the price is slowly approaching the drawn trend line at $240. If the price fails to bounce from here, a retest of the second trendline can also be on the cards. If both these trendlines are broken, the bears might target the 200-day moving average, which currently lies at $195.
A strong bounce from $240 will make Tesla price prediction very bullish, flipping the key resistance level into support. In this case, the upside target of $314 would be within the bulls’ reach, which was the September 2022 peak.