Tesla continued its slump into the new week, as tech and energy shares on the Nasdaq 100 continued the selloff.
Tesla share price tanked 14.4% on Tuesday after it failed to make the S&P 500 listing on Friday. Hopes that Tesla would be listed on the S&P 500 had driven prices far above the $2000 mark, necessitating a stock split. With the stock now stripped of investor interest that follows such listings on the index, interest in the stock appears to have waned.
Tesla may also have other things to worry about. Competition keeps emerging from unlikely corners. General Motors has announced its acquisition of an 11% stake in electric car maker Nikola, with a vision to develop an electric pick-up truck. Shares of Nikola spiked 30% in premarket trading on the news, and the proposed Nikola Nadger truck is to get into production by the tail end of 2022, allowing it to mount stiff competition to the Cybertruck, Tesla’s flagship electric pickup truck.
Tesla is currently trading at 363.00, after it had hit intraday lows of 335.99.
Technical Outlook for Tesla Share Price
Today’s slump has put Tesla below the 368.52 support and converted it into a resistance via role reversal. This price is the resistance level
that has served to cap today’s price action. Today’s low has bounced off an ascending trendline that connects the lows of 29 June and 11 August. Rejection at the 368.52 resistance could force prices lower, which endangers the ascending trendline. A breakdown of this trendline opens up the pathway for Tesla to target 305.57 (16 July and 4 August lows), with further support at 206.41 and 187.38.
On the flip side, a push above 368.52 allows the 20 August high/3 September low at 401.43 to come into view. 430.62 and 457.12 are further upside targets, but medium-term uptrend will only be re-established if 502.28 is exceeded.
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Tesla Share Price Chart (daily)
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