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Tesla Stock Remains In A Down Trend: 4 Price Charts.


Tesla, Musk


Tesla TSLA Chief Executive Officer Elon Musk bought Twitter for 44 billion dollars on October 28th, 2022 even as he continued his duties at the electric vehicle company. On that day, one share of Tesla could be purchased on the NASDAQ NDAQ for $230. Now, that share is worth $180.

Not only did Twitter begin to lose major advertisers as Musk allowed certain neo-Nazi users back onto the site (”Do I want my advertisement to appear next to these Adolf Hitler-love photos?”), but the price of his car company dropped to almost $100 by early January, 2023 before the almost-recovery.

What’s clear, though, from a study of the price charts over different time frames is that Tesla has been in a steady downtrend for a long time.

Tesla price charts.

The Tesla daily price chart is here:

Tesla daily price chart, 5 20 23.

The red dotted line connecting the September, 2022 high with the late March, 2023 high shows the direction of price over that period: down. Although it’s peaked above the 50-day moving average (the blue line), Tesla remains below the 200-day moving average (the red line) which remains in down trending mode.

The “year to date” move is positive but until the price can make back above the downtrend line and that 200-day line, it can’t be called “bullish” from the perspective of price chart analysis.

Here’s the weekly price chart:

Tesla weekly price chart, 5 20 23.

The red dotted line connects the late October/early November, 2021 highs of above $400 with the late March, early April high of $380. The 50-day moving average is trending downward and the stock has been trading below its 200-day moving average for a few weeks now.

Take a look at the difference in volume (along the lower part of the price chart) between early 2020 and the present.

The monthly price chart looks like this:

Tesla monthly price chart, 5 20 23.

The upward move off of the March/April 2020 pandemic scare lows — when interest rates were lowered substantially — is spectacular. Tesla caught the attention of the public and became known as one of the hot stocks of the era.

Is it over? The price has dropped from above $400 to $180 after sliding to as low as $100 just a few months ago. That the George Soros fund and a few other large institutions unloaded Tesla during 2023’s first quarter is notable.

For a different perspective, here’s the point and figure chart showing the wide swings of up and down:

Tesla point and figure chart, 5 20 23.

A lot of factors are at work here, but it’s probably not all that helpful for Musk to be making CNBC appearances where he remarks that “I’ll say what I want and if the consequence of that is losing money so be it.” It’s likely that most Tesla investors would find that troubling since it’s their money.

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