Yahoo Finance Tesla's Rally Finally Broke Down
Tesla’s TSLA relentless rally has finally been shut down by the corona crisis. The shares have fallen over 25% in the past week, and it appears the break down is apt to continue.
Tesla had been making a big bet on China with its Shanghai Gigafactory, but this production facility seemingly opened at the wrong time. January data showed a 46% decline from December in registration for new Tesla’s in China.
Tesla demand in China will likely be suspended until this pathogen is under control, and I expect this stock to continue its downward push as estimates decline.
TSLA is trading at around $700. I would let these shares fall a couple hundred more dollars before I would consider buying. The impact on Tesla and its China production will be significant, but the full gravity of the coronavirus’s effect will not be realized until it is controlled.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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