Crisis Has Become Opportunity for Tesla

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FILE - In this Feb. 2, 2020 file photograph, the company logo sits on an unsold 2020 Model X at a Tesla dealership in Littleton, Colo. Shares of Tesla Inc. fell 4% in early trading Thursday, Feb. 13, after the electric vehicle and solar panel maker said it would sell more than $2 billion worth of additional shares. The move comes just two weeks after CEO Elon Musk said the company had enough cash to fund its capital programs and it didn't need to raise any more money. (AP Photo/David Zalubowski, File)

Tesla (TSLA) is starting to recover.

After plummeting from about $260 to $180, the electric vehicle stock is starting to pivot from over-extensions on RSI, MACD, and Williams’ %R. Last trading at $191, we would initially like to see TSLA refill its bearish gap around $210. From there, we’d like to see it test $250.

Sure, a good number of analysts downgraded the stock. But at this point, it’s overkill.  The bad news appears to have been priced in, and traders are starting to funnel back in. Plus, we have to remember that if and when the Federal Reserve does cut interest rates, we could see a resurgence of electric vehicle sales this year.

With Tesla, recent weakness appears to be a solid opportunity.