Tesla started the year with an opening price of $250.43 per share. The year has been bearish for Tesla investors as the share price has continued to fall. The lowest price of Tesla in 2024 is $138.49 which hit on the 22nd of April. That low was last reached on January 23, 2023. The price has rebounded from the low and price is currently at $177.70. The bounce was a result of gap-ups on the 24th and 29th of April.
An inverted head and shoulder might be formed as a result of the price action, with the shoulders at $175.90 and the head at $138.99. News media across the internet stated that Tesla is said to cut off 500 employees in the supercharger team. Another news media says Tesla is about to layoff 10% of its global workforce, as Tesla CEO Elon Musk has announced the dismissal of two senior executives, Rebecca Tinucci and Daniel Ho and more hundreds of employees.
The RSI on the daily chart has shown that price has been oversold thrice this year, January, March and February. This could be an indication of a possible price reversal. We don’t see the layoff as a threat to the price of Tesla. Our analysts are projecting that price could rally to $268.92 in the coming weeks. This will automatically erase the losses of 2024.
Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get stocks in your portfolio? Schedule a meeting with us here