in the teslaThe shares show a clear downward trend. Of course, all shareholders know this, as the newspaper Handelsblatt points out. However, there are three main factors that would counter any hopes of prices rising quickly again.
Analysts lower price expectations for Tesla shares
The number one reason is that stock analysts have lowered their price targets for Tesla stock. At the beginning of 2024, the average price target was $250, currently only $175.50. That's a decrease of almost 30 percent. According to Handelsblatt, only 17 out of 50 experts currently recommend buying shares. Observers cite as the reason the supposedly postponed launch of the “Model 2”, with which Tesla founder Elon Musk wants to attack cheap competition from China.
Shareholders bet on falling prices
A second factor causing problems for Tesla's stock price: the newspaper attracts many short sellers who bet on falling prices. According to the report, in the last 30 days new bets were opened for a volume of almost 1.5 billion dollars (about 1.4 billion euros). In total, short seller volume on Tesla currently stands at almost $18 billion. The widespread expectation among many investors of a drop in prices increases selling pressure and therefore causes further price losses.
Tesla recently reduced prices in Germany by 2,000 euros. Elon Musk wants to use this to gain new customers.
Technical analysis of stocks sends negative signals
Third, charting technology sends sell signals for Tesla stock. According to Gregor Bauer, president of the German Association of Technical Analysts, the share price drop below $160 should be viewed negatively. This would have led to new waves of sales.
Tesla stock is far from its highs
Tesla shares are currently trading at $141.95 or €133.40 (as of 1:13 p.m.). This means that the stock is a long way from the high price of €316.70 at the end of December 2021. However, in August 2022, a 1:3 share split occurred.
As the stock price fell, Tesla's market value also fell significantly. It currently amounts to 460.78 billion dollars (a good 430 billion euros). As of early January 2022, the value was around $1.2 trillion.
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