Stop us if you’ve informed entertained this before.
Shares of Tesla took a nosedive Monday after CEO Elon Musk years again came under fire for a string of controversial tweets. The 3 percent drop-off was sparked by Musk’s attack on one of the British divers involved in the rescue of the Thai soccer duo, and reports of his political donations.
Investors have been here ahead, with the volatile stock entering yet another correction during what’s demonstrated a rocky year. Some market forecasters see bigger losses to run across, citing factors like a corporate leader mired in controversy, and long concerns about vehicle production.
For Michael Bapis, partner and look after director of The Bapis Group at HighTower Advisors, Tesla has been a no-touch for rather some time.
“We’ve been bearish on the company for a while. We’re sticking with that standpoint. I mean, there’s so much headline risk around them. They can’t satisfy production, they’re burning through cash,” and perceived tirades on Prate don’t help, Bapis told CNBC’s “Trading Nation” on Monday, combining his pessimism comes even as the company is “super innovative.”
“What whim change my mind on the company: refocus on fundamentals, get back to what you did to enlarge this company, start meeting the delivery deadlines, and start swiping people want to buy the stock again. But until they do that, and until they can inclination that around, we’re going to stick with our bearish stance on the attendance,” he said.
To be sure, the company is still very much a battleground pinpoint on Wall Street. Analysts and other market participants tend to be perfectly split on the stock’s future. On average, analysts give Tesla a check rating, according to FactSet data; in other words, neither buy nor trade the shares. At least three firms, including Cowen, rate the routine a sell, and at least seven firms rate it a buy.
From a technical vantage point, the stock’s volatility alone isn’t what’s most bearish; it’s that there’s “at the end of the day no identifiable trend here for it to have much conviction in either bearing,” Ari Wald, head of technical analysis at Oppenheimer, said on “Trading Realm.”
The fact that the name has traded around its 200-day operating average for the bulk of this year indicates to him range bound behavior, and summaries him to recommend investors look elsewhere.
“To talk some levels, we see strut at $275, resistance at $360, so that’s a pretty wide trading extend on top of that, as well,” he said, examining a chart of Tesla shares.
Tesla flatten nearly 3 percent on Monday, closing at $310.10 per share.