The Tesla Inc (NASDAQ: TSLA) stock price has risen 56.6% this year amid a rebound in investor risk appetite and renewed confidence in the company’s prospects as Elon Musk’s Twitter acquisition fades into the background. However, the stock’s performance continues to bear the brunt of Musk’s actions.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
Elon Musk recently replaced Twitter’s logo with the Shiba Inu dog, associated with Dogecoin, the meme cryptocurrency popularised by the billionaire Tesla founder. Musk’s actions have attracted criticism from various quarters, but a recent class action lawsuit related to his promotion of Dogecoin just complicated matters.
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In the past, Musk has suggested that he could accept payments in Dogecoin for Twitter Blue subscriptions, but the success of such a move is doubtful. Due to the crypto's volatility, the CEO had to backtrack on the move to allow Tesla customers to pay for their cars using Bitcoin.
Therefore, a move to accept Dogecoin payments for Twitter Blue subscriptions is likely to end similarly, given the inherently volatile nature of the crypto markets. However, this has not stopped Musk from promoting the meme coin he argues could surpass Bitcoin as a payment method.
Elon Musk’s lawyers have petitioned a US court to dismiss the $258 billion Dogecoin-related lawsuit that claims he used a pyramid scheme to promote Dogecoin. The billionaire may find himself fighting another lawsuit if the court allows the lawsuit to proceed.
Tesla’s latest delivery numbers for Q1 2023 showed that the company delivered 422,875 cars, marking a 36% increase from last year’s figures. However, investors were worried about the steep price cuts implemented by the company early this year to boost sales.
Investors are worried that Tesla will have to slash prices further to attract more customers as Federal subsidies for its cars disappear, leading to an increase in the prices of its EVs.
Tesla investors have learnt to ignore Musk’s actions as Twitter’s CEO, leading to the rally in its share price this year. The delivery numbers triggered the recent drop in Tesla’s share price.
For Tesla shares to rally higher, they must break above the crucial $215 resistance zone outlined in the chart below. The shares are currently headed lower after forming a double-top bearish pattern.
*This is not investment advice.
Tesla stock price.
The Tesla stock price has risen 56.6% this year but has been rebuffed twice at the resistance zone.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.