Probably the most controversial company in the stock market is Tesla. People either love it to such extent they almost worship it or they dislike it so much they think it will be de-listed from the Nasdaq exchange. It seems there’s no middle ground. It also seems no other stock divides people that much.
If I said I care it would be a huge overstatement. I don’t. Why would I have to? And as much I’d want to dive straight into your favorite ideological debates, that’s not the intention of this post. I want to warn you of a potential deeper correction that might happen in Tesla’s stock.
If we go straight into Tesla’s chart, we can see the huge battleground. The bears and the bulls were fighting for the past two years and that’s very well resembled in the price.
We saw huge swings between $250 and $350 as a consequence. The believers in Musk and Tesla were hoping for the price to go much much higher, while the bears obviously must think it will go to zero, otherwise they wouldn’t be so vocal about de-listing.
Only time will tell who is right, but if the price is below $250-260, then we must err to the bear side and if you’re long, in my opinion at least, consider reducing your position. Just in case TSLAQ materializes.