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Tesla Pullback Continues
Shares in Tesla are trading over 1% lower ahead of the open on Monday. The stock has now slipped around 9% from the YTD highs printed earlier in the month. A pullback in broader risk appetite is certainly one of the factors weighing on Tesla here. Hawkish central bank expectations and rising global yields have seen stocks softening from highs in recent weeks. Added to this, fresh geo-political uncertainty emerging around Russia over the weekend has further leaned on investor sentiment.
Goldman Downgrades Tesla
Tesla shares have also come under pressure this week from a fresh investment bank downgrade. Goldman Sachs has become the latest big name to turn neutral on the stock. In a research note issued this week, Goldman downgraded Tesla from a buy to neutral. While the bank remains positive on the company’s longer term growth potential, near-term it shared some concern over valuations and what it calls “a difficult pricing environment for new vehicles.” Goldman now joins Morgan Stanley and Barclays in downgrading the stock this month.
Technical Views
Tesla
The rally in Tesla stock this year has seen the market breaking above the bearish trend line and above the 255.61 level. However, price has since reversed back under the level and, while below it, the risk is that a deeper correction develops. To the downside, 207.71 and the retest of the broken bear trend line will be the key support area to watch.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.