On Monday, Tesla shares achieved the short-term objective as the EV leader ended beneath $900 for the very first time since the Hertz-induced surge higher. To summarize, Hertz said in October that it would purchase 100,000 Tesla automobiles.
Both stocks experienced a spike. There was a considerable misunderstanding, with CEO Elon Musk stating that no agreement had been reached, but the stock market rose nonetheless.
According to the Wall Street Journal, investors have seen one-way traffic since Musk tweeted about transferring a portion of his Tesla interests. Tesla’s stock price reached a high of $1,243 in early November, but it has since fallen by almost 23%.
Analysts had predicted this movement shortly after the first tweet and had called for a move to close the gap at $910, which was eventually achieved. Now that they have attained their goal, it is time to reevaluate their strategy.
News About Tesla’s Shares
Experts anticipate a rebound in Tesla’s stock today as global equity markets appear to be a little more steady as a result of statements from Moderna (MRNA) on the efficiency of their booster against Omicron.
In addition, Senator Joe Manchin (D-WV) has been heard on the radio in a more conciliatory tone, suggesting that some variation of the Build Back Better proposal may pass through Congress by the end of the year.
On Monday, analysts noted that Tesla was on the verge of joining the New York Police Department ranks, further cementing its image as a yellow taxi car in the Big Apple’s financial district.
The Ford (F) Mustang Mach-E, which is expected to be Tesla’s primary opponent this year and next, has also been added to the New York taxi rank fleet.
Gravity, an electric vehicle startup company, is in charge of the fleet. Gravity’s first car is a Ford Mustang Mach E, making Gravity’s taxi fleet the world’s first taxi fleet to feature the Mach E.
Gravity will also launch a Tesla Model Y after final inspections are completed, according to a statement released by the company.
Predictions For The Shares Of Tesla
TSLA CHART Source: Tradingview.com
What happens now that the goal has been achieved? The medium-term data still indicates a downward trend.
Indicators such as the Relative Strength Index (RSI), which is decreasing but not overbought, mimic a similar move by the Moving Average Convergence Divergence (MACD) signal.
Expect a rise today, but the 9-day moving average of $964 is likely to be too far out of reach for investors. Economists would anticipate that this resistance would hold, and certainly, the 9-day moving average has performed admirably, maintaining the decline since December 1.
Another gap has opened, bringing the price down to $843, which is the next target unless the 9-day moving average is breached. The 100-day moving average, around $880, is the next significant support level before the gap at $843.