Al Root, a senior writer at Barron’s, thinks Tesla could be on its way down to $100. He cites the technicals as suggesting Tesla is still a sell and could fall much further.
I don’t agree with his opinion, but it’s noteworthy that a senior writer at Barron’s would say such a thing. It has my attention. Tesla will always be a much-loved stock until Elon Musk sells it. Interestingly, there was news recently regarding Elon having found a replacement CEO for Tesla. I don’t think that would mean Elon wouldn’t still be the owner of the company but if another executive is appointed, that is when I would sell my Tesla shares.
After the market closed the day, Tesla had a forward P/E of 29.78. Of all the tech stocks that may be recession-proof, Tesla is one of them that might hold up the strongest. Every time this stock sells off, I generally regret not having bought more. That said, it’s obviously in a technical downtrend that is yet to show signs of turning around. The next level of support is around $164 and then $147. I don’t see it going much past $147, but before making that call I would need to see what the rest of the stocks are doing. If Tesla is at $147 and the stocks are crashing because the economy is worsening, I wouldn’t buy Tesla yet.
Image credit: FinViz