TSLA Collapse Accelerating
The Credit Strategist Blog
Just a quick note to point out that TSLA’s market cap just fell below $500 billion with the stock down another nearly 6% today. The destruction of value in this stock over the last two months and in recent days is nothing short of breathtaking. Something is clearly going on with what is a seemingly broken stock. It is falling on rising volume on days when the market is rising - both of which are troubling signs from a technical perspective (though the market is well off its highs earlier today). It would not be surprising if we learned that Musk was selling some of his shares the last couple of days but whatever is happening, the price action is increasing the risk of a downward spiral of a still obscenely overvalued stock that could cause a cascade of consequences because of Musk’s high level of borrowings against his position. TSLA has been a Nasdaq and tech stock bellwether during the bull market with enormous psychological influence over the broader market. If something doesn’t stop this stock from collapsing further, it could spell real trouble for Musk, tech stocks and the market in general. Keep a close eye on TSLA. This is not normal trading behavior and it signaling something serious going on.
Cathy Wood still survives...... her fund is just a bit poorer. Didn't she say Tesla was going to $1200?
I think never was a stock held in such oversized positions by investors as Tesla. It sure could spiral down. And there are not many shorts to cover.