EXCLUSIVE: Tesla Bulls Are Bruised Not Beaten, Says Direxion's Egilinsky
Tesla Inc‘s (NASDAQ:TSLA) brutal year continues.
The electric car company’s stock is down nearly 38.5% year to date, as the electric vehicle giant struggles with falling sales, stiffening competition, and political noise that's increasingly hard to ignore.
"This has been a rough stretch for those traders who have been bullish on the stock," said Ed Egilinsky, Managing Director at Direxion, in an exclusive interview with Benzinga.
"Increasing competition, declining sales, and the softening in consumer demand have all contributed to the decline," he said. Despite the drawdown, some active traders think the worst may be behind Tesla — at least in the short term.
Tesla Stock Technicals Still Flashing Red
Chart created using Benzinga Pro
Tesla stock has shown signs of overselling, hovering at $237.27 as of Tuesday morning, with its RSI (relative strength index) reading at 39.81.
While not technically oversold yet, it’s inching closer to that 30 threshold. Technically, things look bleak: TSLA stock trades well below its 8-, 20-, 50-, and 200-day simple moving averages, all flashing bearish signals.
Its MACD (moving average convergence/divergence) indicator is negative at 12.37, reinforcing the bearish setup.
Musk's Politics: A Double-Edged Sword
Beyond the numbers, CEO Elon Musk's political entanglements are casting a unique shadow over the stock.
"Tesla stock is unique in the sense that Musk has ties to the current administration," Egilinsky noted, a factor that could become more volatile heading into election season.
Curiously, rumors last week that Musk might scale back his advisory role with DOGE coincided with a rally in the stock.
Some See A Short-Term Rebound
Still, for those betting on a turnaround, "some feel the stock is oversold short term," Egilinsky said.
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