Tesla stock (NASDAQ: TSLA) price is in hot waters after the company released its latest earnings report on 19th July. The EV giant’s stock has performed extremely well in 2023. In fact, it has become one of the best-performing stocks of this year. Nevertheless, after a massive rally in the first half of the year, the bulls now appear to be losing momentum.
On Thursday, US tech stocks experienced a major sell-off after months of uptrend. The Nasdaq Composite fell by 2.1%, which was its biggest loss since March 2023. The S&P 500 index also closed the day with a 0.68% loss. This bearishness can be attributed to the negative price action in Tesla shares, which plunged 9.74% in a single day.
Tesla Shares Plunge Despite Earnings Beating Estimates
The bullish rally in tech stocks seems to have come to a halt after the markets deemed the latest Tesla and Netflix earnings not satisfactory. In its Q2 results, Tesla beat analyst expectations of 80c/share by announcing earnings of 91c/share. The sales during the second quarter came at $24.9 billion against the market expectations of $24.2 billion.
However, the profit margins of the company slipped during Q2 2023, which was a bit concerning for the investors. Consequently, Tesla stock price had the biggest loss since January 2023. While the price cuts have increased the sales for the company, the profit margins have shrunk.
Tesla Stock Price May Retest $240 Soon
Currently, NASDAQ: TSLA is trading at $262.9. If the sell-off continues, the stock may retest its recent low of $241. This may also result in a retest of the trendline that lies around $234. While many analysts are calling this the top for the recent Tesla rally, I still think there’s some possibility of a retest of $315 resistance.
Tesla stock price forecast will remain bullish as long as it holds the bottom trendline of the wedge shown below. A breakdown below this trendline will put another retest of the $200 on the cards. This month’s FOMC meeting will keep the prices of tech stocks in check.
In the meantime, I’ll keep sharing the updated Tesla forecast and my personal trades on my Twitter, where you are welcome to follow me.
