It never fails that when a market goes down analysts come up with all the reasons why. A worst-case $10 price crash forecast may be a bit too radical even for my bearish outlook, but it sure would not surprise me if Tesla eventually did crash to below $40.
Everything about electric cars is overdone as supply is far exceeding demand. Tesla’s stock price was another mania move on par with the Tulip Mania.
Figuring out the top is a real challenge and I may have to adjust some diagonal wave structures which would contain the Cycle degree wave 3 top.
Don’t get excited about this thinking to buy on the dips, because the stock can crash and fill that little gap at $40. Between $30-$40 Tesla would have good price support.
A few auto-pilot crashes sure can turn investors off and besides that TSLA is on a cash burn that it can’t maintain.
Either way the start of solar cycle 25 could send Tesla stock price soaring again.
The Gold/TSLA ratio is at 6.20:1 this morning which is a bit better than the 1.13 expensive ratio I do have. This ratio still has to spread as 6:1 is still far too expensive