According to several news agencies, we learn that the hedge fund titan Einhorn of Greenlight Capital LLC is returning his Tesla car. In his latest letter to investors he writes:
“We wonder whether surge production techniques to support self-congratulatory tweets are economically efficient ways of ramping production, or whether customers will be happy with the quality of a car rushed through production to prove a point to short sellers,”
Musk’s reply is not a shocker.
The question is where is Tesla stock heading and if Einhorn returning his Tesla shorts?
Despite all the news around the hyped stock, Tesla actually trades in a relatively boring range. Tesla is trading at exactly the same level we saw it trade back in early 2017. The stock has spiked multiple times only to revert back to the 300 ish level, confuse people and then put in another squeeze.
This last move lower has been violent. Is this just another bounce setting up or could the price action start gaining momentum to the downside?
The support levels to the downside are 275 and then the big 250 level. First bigger resistance is at 320, where we also find the 200 day average.