TESLA: Oversold. Can the price cuts stop the bleeding?

22 เม.ย.

Tesla announced aggressive price cuts globally on their main model lines as well as its FSD and is reported that a 20% headcount reduction is pushed. Further decline on today's opening has pushed the 1W technical outlook to the brink of oversold territory (RSI = 32.105, MACD = -19.430, ADX = 47.504) and bottom of Channel Down that started last July.

So can these brave measures to a dismal Q1 delivery report counter the declining global demand and price competition from Chinese EV producers and restore the stock price to where it was earlier this year?

Well one thing's for sure, TSLA has been in this situation before. The growth pattern from 2019 to today is very much like the one from 2012 to 2017. Both started with immense parabolic growth that peaked and declined towards the 0.382 Fibonacci and rallied again after forming a bottom. We are now at the stage where Tesla founf support in late 2016 near the 0.786 Fib of the corrective wave. The 1W RSI patterns are similar as well.

As long as the 0.786 Fib holds we expect at least $500 by mid 2025. It is very likely that tomorrow's earnings report coupled with the price cuts will be the fundamental base that the company needs to restore investing appetite back. On the long term this appears to be a worthwhile low risk entry for the undisputable leader of the EV market.



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