Tesla (TSLA) was down 6% on Monday morning, after the market decided that CEO Elon Musk’s April Fool’s tweet about the company going bankrupt wasn’t actually that funny.
Factoring into today’s move lower is the company’s announcement that they recalled 123,000 of the popular Model S, due to an issue with power steering. As well, the company reported on Friday that the Model X previously involved in a fatal accident involved the autopilot feature.
Such issues combined with recent stock volatility could make it difficult for the unprofitable Tesla to continue raising the funds necessary for operations.
Our analysis of TSLA’s market cycles on the weekly chart below suggests the stock is near a bouncing point. As such, a rebound is likely to be a good selling opportunity, with the cycles indicating possible risk into the summer.
Tesla (TSLA) Stock Chart with Weekly Bars
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