Tesla (NASDAQ: TSLA) traded 5% lower on Thursday morning, after its CEO appeared to mock the Securities and Exchange Commission (SEC).
One week ago, Elon Musk settled charges levelled by the SEC that in an August 7 tweet he used false information to manipulate Tesla’s stock price. The settlement involved an admission of guilt, removal from the board of directors, and a $20 million fine.
After Thursday’s market close, Musk tweeted, “Just want to (say) that the Shortseller Enrichment Commission is doing incredible work. And the name change is so on point!”
Interestingly, it was Musk’s tendency to voice his frustration with short sellers that led to the charges. The SEC has not commented on his latest antics.
In analyzing the market cycles for TSLA in the chart below, we can see that the stock is pulling back, but early in the rising phase of its intermediate cycle. The odds are high that it will rebound.
Once this dip is over, we expect the stock price to increase along with the rising phase of the new cycle. Yet we expect the rally to fail in the $305-$320 resistance zone.
Tesla (TSLA) Stock Chart with Weekly Bars
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Twitter: @askslim
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
