You’re here (TSLA) shares ended higher today, ending a brutal 7-day losing streak for the title.
It’s a brief respite for investors though, with the stock down more than 17% in the past 5 days, 42% in the past month and a whopping 68% for the year.
Some market traders and technicians look at the $100 level as a support for the stock, something that was unthinkable only a few months ago.
But the latest news from China would have the automaker extend your vacation, as COVID cases rise in the region following the government’s relaxation of zero-COVID policies. The automaker will also have a longer Chinese New Year break for employees than it normally does in January, although Tesla China said it was give workers more time to travel house for the holidays.
But of course, it’s not just the news out of China that weighs on the title. These are the recent activities of CEO Elon Musk.
Musk’s time on Twitter leading his new venture as CEO has Wall Street investors and analysts screaming, as they implores Musk to return to Tesla. One analyst went so far as to say that Musk is “fell asleep at the wheelat a pivotal time for the company.
Not helping matters are Musk’s large Tesla stock sales, which many say is being used to fund his Twitter buyout. Less than two weeks ago, Musk revealed that he sold 22 million Tesla sharesworth $3.6 billion.
The total amount of shares Musk has sold since April, when he announced his offer to buy Twitter, was $23 billion – and for the year Musk has offloaded $40 billion worth of shares .
The cumulative effect of these sales weighed heavily on Tesla stock, the one that counts relatively little high percentage of individual shareholders as opposed to institutional ownershipand the one who is one of the most very short actions on the market. The lack of heavy institutional support and a high level of short-term interest is a recipe for disaster for bull Teslas.
Nonetheless, there are potential positive catalysts for the stock. Shortly after the New Year holidays, investors will be watching Tesla’s fourth quarter delivery report. The Street is looking for 422,000 deliveries worldwide, according to Bloomberg estimates.
Additionally, Tesla continues to ramp up production to GigaAustin and Giga Berlin, both of which have reached new production milestones. Analysts like Colin Rusch at Oppenheimer believe Tesla continues to cut costs For long-term electric vehicle manufacturing, other manufacturers will struggle to match its efficiency in the future.
Speaking of the not-too-distant future, starting January 1, Tesla will once again be eligible for federal tax credits for the purchase of certain electric vehicles, thanks to the law on the reduction of inflation. With the Treasury Department delaying new rules regarding battery material requirements and sourcing, less expensive Tesla electric vehicles like the Model 3 and Model Y will be eligible for the full $7,500 tax credit, depending on the buyer’s income level.
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Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on instagram.
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