Tesla shares are heading into a 2nd straight day of losses following Monday’s listing on the S&P 500 index. The listing could not have come at a worse time as the impact of the discovery of a mutant coronavirus strain in the UK rattled global markets into a selloff.
Tesla share price is also receiving further downside as a new report reveals that its widely successful EV is about to get a major competitor: from Apple. Apple plans to launch a self-driving electric car, which could hit the market in 2024. Project Titan is expected to be completed with Apple using its own proprietary battery technology. Tesla is currently down 2.61%.
Having come off new highs post stock split at 695.00, Tesla is now in correction. However, it needs to break down the support trendline that connects the recent lows for the selloff to gain more traction. If this happens, 601.39 would be a logical target. Other downside targets are at 564.57 and 541.18.
On the flip side, bulls would be looking for an advance that takes out 654.12 and 695.00 in order to establish new highs. This move could come from a bounce on the support trendline connecting lows of 10 Dec and 16 Dec. A breakdown of this trendline could invalidate bullish expectations in the near term.
