TSLA is DROPPING. TSLA, this year alone, has dropped about 70%. Why? Well for one, Elon Musk (CEO of Twitter and Tesla) sold $3.6 BILLION dollars worth of Tesla Stock to purchase Twitter – and that is the main reason why TSLA dropped from about $200 to $108. That’s over a $90 in a very short period of time – just imagine buying a couple of put options.
In addition to that, along with Elon selling his stock, many people weren’t very supportive of Elon due to the fact that when he acquired Twitter he was disliked for the following reasons: 1. He unbanned several public figures such as Donald Trump and Kanye West and 2) He gave the users the ability to speak freely – which ultimately led to the rise in antisemitic and racist comments.
With that being said, TSLA stock has dropped 70% this year however it might go up again. ANYWAY, keep in mind that this is all fundamental analysis.
What is fundamental analysis? Making trades and decisions based off of what’s going on in the news. While this can come in handy and is very valuable – technical analysis is very important too. You can be completely ignorant of what’s going on in the world (which I do NOT recommend) and still become a profitable trader with technical analysis – which is what we go over in our trading room and group.