Tesla (TSLA.US) stock plunged as much as 13% today — the worst day since September — before recovering the majority of those losses during FED Chair Powell testimony. The declines are caused by two factors. Firstly competitor Lucid Motors, run by an ex-Tesla engineer, announced plans to go public via a SPAC. Lucid said it is on track to start production and deliveries in North America in the second half of this year with Lucid Air, its first luxury sedan. It had previously said it planned to start its deliveries in spring of 2021. Lucid, which plans to build vehicles at its factory in Arizona, aims to deliver 20,000 vehicles in 2022 and 251,000 in 2026 by adding other models like an electric sport utility vehicle.
Secondly, Tesla's is dependent on bitcoin price given its $1.5 billion investment in the cryptocurrency. The world’s most popular digital currency took a hit over the weekend and into Monday after Musk suggested on Twitter that bitcoin and other cryptocurrency valuations “seem high." At about $47,000 currently, bitcoin prices are nearly 20% off from their record high of about $58,000 on Feb. 21 which puts pressure on shares of the electric vehicle maker.Tesla (TSLA.US) shares fell below the $695.00 price level the company entered the S&P 500 on Dec. 21, 2020. However buyers managed to halt decline at $625.00 level and stock is trying to erase recent losses. Currently price is testing major resistance at $710.00 which coincides with 200 SMA (red line). Should a break above occur, then another upward impulse could be launched towards $750.00 level. Source: xStation5