[TSLA] Bear Market to $15: Musk’s Empire at Risk?Tesla’s market cap now surpasses the combined market cap of all major automobile producers. Elon Musk is undeniably a genius, yet this staggering valuation owes much to a robust bull market and post-COVID hype. If Tesla were valued using the same earnings and revenue multiples as the average automaker, its stock price would hover between $15 and $20 per share.
TECHNICAL ANALYSIS
Tesla’s chart is one of the most striking I’ve ever seen. It reflects a powerful bull market that has completed an Elliott Wave five-wave structure, signaling that a bear market is likely next.
Wave 4 formed a running triangle—a pattern typical in strong trends—and was followed by a short Wave 5, exactly as expected. Running triangles paired with a brief Wave 5 often indicate distribution. Indeed, Tesla’s chart reveals a beautiful four-year distribution phase (2021–2025). During this period, the stock struggled to climb higher due to persistent selling pressure. Strong hands have now offloaded their shares to weaker hands, setting the stage for a bear market.
A triple divergence on the monthly RSI further confirms extreme overbought conditions and reinforces the case for selling. There’s no significant support until the $15–$20 range.
If my prediction of a 2008-style crash in the S&P 500 (see related ideas) holds true, Tesla could bottom out around $15—a level that, intriguingly, aligns with its COVID-era low.
"Bull market geniuses turn into bear market fools."
Elon Musk net worth derives value mostly from Tesla and SpaceX as other companies are illiquid and very speculative.
Current Musk's Tesla stake is worth around $100 billion if the price falls down to $15 it would be worth $6 billion, all other things being equal that alone would put a significant dent in his net worth.
Musk is widely recognized as someone who leverages his Tesla shares and SpaceX to fund other ventures and lifestyle.
It is not clear at what price level his margin calls are and what arrangements he has with banks but if crash of this magnitude happens all his Tesla shares could be wiped out with possible full blown bankruptcy.
I wish him well and hope he does well, but this scenario is not unlikely and interesting to ponder.
