By Senad Karaahmetovic
A massive selloff in Tesla (NASDAQ:TSLA) continues to be a dominant trading story in the final week of 2022. Shares of the electric vehicle (EV) producer closed more than 11% yesterday to mark the seventh consecutive down day.
Tesla stock has now lost two-thirds of its value in just 3 months. Wedbush analysts described the selloff as “eye popping” and blamed the most recent wave of selling on yesterday’s report in Reuters that Tesla’s Giga Shanghai will continue to operate at a reduced output rate in January.
Other sell-side analysts, such as at Baird, stepped in to urge clients to use the weakness in Tesla stock and buy shares. The analysts introduced Tesla as Baird’s “Best Idea for 2023” last week.
“We continue to believe TSLA is the best positioned EV maker in both the near and long term,” they wrote in a note.
BTIG analysts, on the other hand, focus on technical levels that may offer some level of support to the embattled EV maker.
“By almost any price-based metric it is severely oversold, yet until we see some evidence of selling pressure abating, it's tough to fade this momentum,” they wrote in a note.
BTIG’s chief market technician sees $100-$105 as a zone that could be seen as “longer-term support,” at least based on the volume profile.
Tesla stock is up 3% in pre-open Wednesday after falling to the $105 zone earlier this morning.