TESLA: Why do shares keep falling? TRUMP!!
Concerns about overseas sales and tariffs add to the company's disappointing fourth-quarter results reported last Wednesday.
Tesla reported earnings of 73 cents per share, below analysts' expectations of 76 cents, and revenue of $25.71 billion versus the $27.26 billion expected. Revenue fell 8% compared to the same quarter last year.
In addition, the looming application of tariffs on China and Canada (Mexico has a one-month extension) is spooking investors. In a recent earnings call with analysts, Musk acknowledged that while Tesla has tried to localize its supply chain, it still relies heavily on parts from around the world for all of its operations. “Therefore, the imposition of tariffs, which is very likely, will have an impact on our business and profitability,” he stated.
Canada is a key supplier of auto parts, as is China. And Canadian officials are specifically focusing some of their discontent with Trump's tariffs on Musk. On Monday, Premier Doug Ford announced that Ontario would cancel a $100 million contract with Starlink, which is part of Musk's company SpaceX.
In other words, MUSK is one of the TARGETS that ARE going to be punished FOR THE US TARGETS.
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--> How far could the price fall?
At the moment the technical aspect is bullish (Bull) in the medium-long term, but in the short term it is bearish (Bear), so WE HAVE TO WAIT to enter long.
Today it has reached the first important support zone, we are talking about the 350.63 zone, which also coincides with a Fibonacci retracement of almost 50%. If the zone respects it and the MOMENTUM and STRENGTH in H4 turn bullish (Bull), it will be a good time to enter long positions in TESLA again.
--> KEY SUPPORTS
1) 350.63 (Key support in Daily time frame)
2) 355 (50% Fibonacci)
3) 314 (Key support in Weekly time frame)
4) 300 (61.8% Fibonacci)
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--> When the chart gives us the first bullish warning (Bull) in time frame, I will publish a new analysis indicating the entry SET UP.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.