Losing all its spark? Nah. But, we see a correction for TSLA happening this December, starting within the next 1-2 days. Why?
- It’s currently bumping into price levels we last saw in 2022, which served as a strong ceiling back then and might trigger profit-taking now.
- It's well into a Wave 5 Elliott Wave, signaling exhaustion in 4h/8h/1D timeframes.
- EV3 Reversal Indicator is firing at the tip of this Wave 5
Additionally, many are noting that Tesla’s valuation feels stretched compared to its earnings and growth prospects. Analysts point out that its current price may rely on overly optimistic assumptions about future market share, tech breakthroughs, and profitability. Some also highlight that competitors are catching up, which could eat into Tesla’s premium valuation. Meanwhile, skeptics argue that the stock’s recent run has simply gotten ahead of fundamentals, and a correction might be due as more realistic expectations set in.
We see a 10% slide to the $360 range.
Let's see what December brings.
Be Alert.
Trade Green.