TESLA DOWN AFTER SEC SUES CEO
Tesla is currently trading at 270.44-lower by about 12% as compared to the previous closing.
In recent news, Tesla shares plummeted more than 13% in after-hours trading on Thursday. The stock fell after news that the Securities and Exchange Commission sued CEO Elon Musk for fraud according to court documents filed on Thursday. The SEC complaint alleged that the CEO issued “false and misleading” statements about potentially taking Tesla private last month and failed to properly notify regulators of material company events. According to market sources, the company was also expecting to be sued, though Tesla was not named as a defendant in the complaint.
The SEC is seeking to remove the CEO from his role as the head of the electric car company if found guilty. However, Elon Musk called the allegations “unjustified” and said he “never compromised” his integrity.
On the technical front, the RSI is currently at 36% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is below the middle line of the Bollinger bands and is heading downwards.
Overall Bias is Negative and short-term trades can be initiated with tight Stop Loss and Profit targets.
TRADE SUGGESTION-LIMIT SELL AT 272 TAKE PROFIT AT 267 STOP LOSS AT 275