It’s no secret that Tesla is tanking in a bear market. The king of electric vehicles and its stock have taken an absolute beating the past month or so…
So in today’s video, which I just so happened to film at Daytona International Speedway, we’re going to talk about the Tesla bear market.
But first, the way that Wall Street works is when a stock or index falls as much as 9.99%, that’s called a pullback. Between 10% and 19.99% from a recent 52-week high, that’s considered a correction.
And an official bear market is entered when a stock falls more than 20% from a recent 52-week high. That’s just the way we chop things up.
Taking a look at the Tesla Inc. (Nasdaq: TSLA) stock chart, it reached an all-time record high of $883.09 a share on Jan. 26. The first day of February, the stock was still strong, trading at $872.79 by the first closing bell of the month.
But things have been all downhill since…
By Thursday of this week, it closed at $621.44, a full 29.63% below its record high less than a month and a half before. That’s a big fall, and Tesla is in a bear market. It’s fallen below its key levels of support like the 50-day moving average.
And that means the trend has definitively changed…
It’s no longer the market leader, it’s no longer the strongest stock out there — and this happens! The stock has had a huge run up, and it’s due to pull back.
It’s happened to just about every major stock in history, and then one of two things happens next:
And it’s not the first time Tesla has done this. In fact, it’s doubled… and then doubled again after crashing before.
So what comes next after the Tesla bear market, and is it still a company worth investing in?
Tune into our short video and we’ll discuss what’s coming next. Also share your thoughts on Tesla’s crash in the comments below. Are you considering getting in now? Did you buy at the top and get burned? Let us know!
And as always, please like and subscribe to our YouTube channel. You can also follow me on Twitter, and read more of my thoughts on the market at WealthPress and on Forbes, where I’m also a contributor.
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