Elon Musk saw $1.1b wiped from his net worth in the first two minutes of trading as TSLA fell as much as 10.7%. Tesla reported its largest sales drop in history: a 31% drop compared to the prior quarter, and a disappointment that raised difficult questions about demand for its products. The company is also under the shadow of a case against Elon Musk filed by securities regulators.
On 2 April we wrote that “prices are looking to test resistance formed by the upper boundary of the falling wedge and the 50-day SMA”. The stock did indeed test — and fail — at those levels on 3 April; it rose to a high of $296.17 before closing lower for the day, capped at $292, the confluence of the two resistance levels noted. The stock subsequently gapped down on yesterday’s news, back into the middle of the falling wedge dating back to late 2018. $250 support comes back into play.