Tesla Stock Bouncing Back After Musk Misfire

Tesla, Inc. CEO Elon Musk stunned Wall Street analysts during last week’s earnings conference, cutting off questions about the controversial automaker’s capital requirements and customer reservations. His reaction to “boring bonehead” questions triggered a double-digit decline and quick $3 billion loss in market value. Tesla stock has bounced back since that time, but the outburst could undermine longer-term buying interest and investor confidence.

The stock entered a stealth downtrend after topping out near $390 in June 2017 and has been flirting with a 52-week low in recent months, caught between an April 2017 breakout and March 2018 breakdown. This holding pattern is likely to generate a strong trend move as soon as the battle between low Model 3 production levels and high cash burn provides a clearer view of Tesla’s ability to survive and prosper into the new decade. (See also: Is Elon Musk Making Things Worse for Tesla?)

 

Tesla has recouped the points lost following Elon Musk’s outburst to Wall Street analysts, but the stock remains stuck in a downtrend. …read more

Read more here: Tesla Stock Bouncing Back After Musk Misfire

Category: TSLA

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