Tesla stock price sinks 9% after CEO Musk says it is “too high”
- Musk says shares of Tesla are priced “too high”
- Two days ago, he used investors' calls to rant about shelter-in-place restrictions, using a word “fascist” to
- Shares of Tesla have now lost around 20% in just two days, closing on important short-term support around $600
Shares of Tesla (NASDAQ:TSLA) are trading around 9% lower after the company’s CEO Elon Musk tweeted that they are priced too high.
Fundamental analysis: Musk pulls shares lower
Elon Musk, the CEO of Tesla, tweeted that shares of his company are trading “too high”. Minutes after his tweet, Tesla stock price crashed to below $700, just one day after trading at a 2-month high of $869.
Obviously inspired Musk then continued by tweeting about the U.S. national anthem – Star Spangled Banner, and Mars.
On Wednesday, Tesla reported better-than-expected quarterly results, sending its shares 9% higher. The electric car giant beat the EPS and revenue expectations despite its factories closed around the globe.
However, a call with investors turned from a regular exchange between analysts and the company’s senior executive into Musk ranting against shelter-in-place restrictions, calling them “fascist”.
“This is not democratic. Give people back their (expletive) freedom,” Musk was quoted.
Hours before the investors call, Musk published a series of tweets to launch his own lockdown protest.
This is not the first time Musk hijacked the earnings call to rant. Two years ago, he used the same opportunity to insult analysts, the media, and federal regulators.
“I think that if people are concerned about volatility, they should definitely not buy our stock,” Musk said. “I’m not here to convince you to buy our stock. Do not buy it if volatility is scary.”
His performance, coupled with a historic quarterly loss recorded by Tesla, pushed the stock price around 7% lower.
Technical analysis: Stock price drops 20% in less than 48 hours
Following Musk’s tweet about shares trading too high, Tesla stock price crashed to as low as $683, a 12.5% decline on the day. Shares have managed to regain some of the lost ground, with the stock price now down around 9%.
All in all, shares of the electric giant lost around 20% in value in just two days, threatening to close the week in red despite substantial gains earlier in the week. Moreover, the stock price is on its way to create a shooting star candle, which is a bearish reversal candle that signals a shift from the uptrend do downtrend.
Looking lower, the zone between $600 and $630 is a home to multiple layers of support that is likely to offer a good opportunity to buy Tesla stock.
Summary
Shares of Tesla are trading around 9% lower after its Musk said they are priced “too high”. This comes just two days after Musk hijacked a call with investors to rant about shelter-in-place restrictions, calling them “fascist”.
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