Elon Musk

YEREVAN (CoinChapter.com) – The electric vehicle giant Tesla saw its stock TSLA (NASDAQ:TSLA) tumble 30% since Dec 12, as the price per share stood at $125 on Dec 23, the lowest value since Sep 2020. Tesla chief Elon Musk and his recent troubles at Twitter might have contributed to the drop. But the CEO says he’s not going to sell more stock in the upcoming 18-24 months.

More pain ahead for TSLA (NASDAQ:TSLA)

The TSLA price decline could continue as the trading volumes on the daily chart below spiked red candles since Dec 16. Additionally, the selloff wave caused the stock price to lose significant support at $200. The next possible assistance could come from the dropping trendline, which has been significant since Oct 2021. If so, Tesla stock would see another 40% off its valuation in Q1 2023.

Tesla stock (TSLA) daily price chart. Source: TradingView.com

As mentioned, the TSLA stock suffered a 36% price slash month-to-date, while the S&P500 index monthly loss stood at 8%. The heavy selloff spurred a discussion about the reasons behind it. Investment advisor and Tesla bull Ross Gerber pinned the blame on bad management.

Tesla stock price

In a discussion that followed, Musk answered that the decline was due to bank savings accounts approaching stock market returns.

As bank savings account interest rates, which are guaranteed, start to approach stock market returns, which are *not* guaranteed, people will increasingly move their money out of stocks into cash, thus causing stocks to drop.

commented the CEO.

Also read: US Don’t Jail Bankers but is After SBF.

Meanwhile, the bearish cues mentioned above coupled with pessimistic predictions after the US started discounting key models.

Tesla doubles its discounts in the US

The company’s US branch doubled discounts on Tesla Model 3 and Model Y vehicles in December. However, retail investors might have taken the discount as a ‘canary in the coalmine’ for softening demand as economies slow.

Furthermore, analysts have reduced their estimates for Tesla’s vehicle deliveries for the current quarter, reflecting slowing growth in key markets like the United States and China.

Craig Irwin, a senior analyst at ROTH Capital Partners, said the move “doesn’t raise confidence,” particularly at a time of “increasing competition.” Meanwhile, according to the new federal spending bill, the government plans to introduce tax credits to spur electric vehicle demand starting in January.

Musk will not sell any more shares. For now.

As CoinChapter reported in mid-December, the Tesla chief sold roughly $40 billion worth of TSLA stocks year-to-date, as Q4 slashed the shares’ value by 50%. However, during a Twitter Spaces meeting on Dec 22, the CEO declared he has no plans to sell more, at least for the upcoming 18-24 months.

I’m not selling any stock for, I don’t know, a minimum of 18 to 24 months. So you can count on no stock sales until 2025 or something. I needed to sell some stock to make sure there was powder dry to account for a worst-case scenario.

said Musk.

Notably, it is not Musk’s first time of abandoning a ‘solid’ statement. The CEO declared in late April that he had “no further TSLA sales planned.” But the billionaire has gone to sell much of his stake afterward. The mid-December batch brings the total of Tesla stocks sold by Musk over the past year to almost $40 billion.

According to financial research firm VerityData, Musk has sold over 94 million shares so far this year at an average price of $243.46 per share for pre-tax proceeds.

Also read: No Love! Sam Bankman-Fried’s Girlfriend Caroline Ellison Turns Key Witness in FTX Saga.

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The post Tesla stock (NASDAQ:TSLA) lowest since 2020 but Musk says he won’t sell any more TSLA for 2 years appeared first on CoinChapter.

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Filed under: Bitcoin - @ December 23, 2022 8:44 pm