“Is Tesla Stock Running Low on Fuel as Musk Keeps Selling?

The Tesla stock is taking a beating this Friday, with Elon Musk’s continued selling amid the ongoing scrutiny of growth stocks. Let’s delve into the charts.

Tesla (TSLA) shares are once again feeling the heat this Friday, taking a tumble alongside the broader downtrend in growth stocks.

The growth stock realm has undeniably been enduring a bearish spell for a while now. We witnessed the first wave of this bear market culminating in May.

Whether we label it a temporary rebound in an ongoing bear market or a secondary bear market within the same year, the semantics matter less. Today, Tesla shares are down by 6%, leaving both bulls and long-term investors in DocuSign (DOCU), down 40%, feeling the pinch.

The Arkk Innovation ETF (ARKK) is witnessing a nearly 7% decline today, often seen as a bellwether for growth stocks.

Its downtrend has persisted in five out of the last six days and in 10 out of the past 12 sessions, now heading towards its fourth consecutive weekly decline.

How does this relate to Tesla? Well, for one, it remains the top holding in ARKK despite Cathie Wood’s earlier divestment this year.

Even as CEO Elon Musk persists in offloading Tesla shares.

While this might have made for sensational headlines last month, Musk has resumed his selling spree, recently shedding over $1 billion worth of Tesla equity.

Navigating Tesla Stock
Yesterday, I highlighted the breakdown in Tesla stock, as it dipped below $1,062 during the week.

However, bulls managed to shore up the stock, pushing it back above this level and closing near $1,085.

This price action offered opportunities for active traders with predefined sell criteria.

Opening around $1,085, bulls had ample time to either exit positions on a retest of last week’s low at $1,062 or on breaching Thursday’s low at $1,057.

As it slipped past these levels, Tesla stock encountered a significant chart point at $1,000. Beyond psychological significance, this level aligns closely with the 10-week moving average.

While this could trigger a rebound, in the current market environment, outcomes are unpredictable.

Just below lies the 50-day moving average, adding another layer of potential support.

Should Tesla stock breach these levels, traders must bear in mind the $900 to $910 zone. This marks the gap-fill level and the previous all-time high.

On the upside, a rally from current levels or the $1,000 area is plausible, contingent upon reclaiming the 10-day and 21-day moving averages for a sustained upward momentum.

Moreover, a revival in growth stocks is imperative for Tesla’s resurgence.”