Should I invest in Tesla (TSLA) as stock price dips below $700?

Shares of Tesla (NASDAQ: TSLA) have continued to move lower as today’s selloff extends below the $700 handle.

Fundamental analysis: Ignore Bitcoin talk and focus on EV sales - analyst   

After Tesla spent $1.5 billion to buy Bitcoin, some investors are concerned that the company exposed itself to more volatility. Wedbush analyst Dan Ives believes this is one of the key drivers behind the selloff in TSLA in recent days.

Secondly, there are some concerns that Tesla is experiencing weaker demand after the company stopped taking new orders for the lowest-price version of Model Y. Prior to this, Tesla slashed the price of its Model Y standard range SUV, from $41,990 to $39,990.

Ives adds that investors should play a long-term game with Tesla and focus on EV unit sales, with China expected to drive growth.

Technical analysis: Where to buy?

Tesla stock price is trading over 5% lower on the day to dip below the $700 mark. At one point, shares of Tesla fell to $619.00 the lowest level recorded in the past 2 months. 

This zone hosts the 100-DMA and, as seen in the chart above, the price action touched the blue line and raced quickly higher. This was an ideal opportunity to invest in TSLA shares and traders should use this pullback to buy Tesla stock. 

Summary

Tesla stock price is trading lower today on some demand concerns, as well as investors’ worries related to investing in BTC.