So what is going on with Tesla stock and why is it selling off what's going on Team: Mitch Ricky with Techbook Solutions here with a super quick stock market Update: Tesla is down another 7.8 percent. This is the sixth consecutive red day that Tesla has had. I mean just a couple of months ago, it was trading at 310 dollars a share. It wasn't that bad right now it's literally trading at nearly one third of that, right? I Wanted to share some data with you guys.

so based off of previous all-time highs, after it splited to 414 a share, it is now down 72 percent from previous all-time highs 72 percent its current price point. If you were to look back to when's the last time it was trading at this price level, it would date back to 2020. So in the past two years of Tesla's growth, which has been huge, right it has given back everything that it's gained in the past two years. Really? almost three years at this point.

And one of the things that we also need to take into consideration is its market cap. Right now it's at 357 billion. It was nearly at 1 trillion, right? But the crazy thing about that is after it's one and three split, right? So if we look at this, Tesla used to trade at around 12, almost thirteen hundred dollars a right? And if we look at its current price level being at 113, kind of asking the question. where would Tesla be right now? if it didn't do that stock split, it would be trading at 336 dollars a share, 339 dollars a share.

That's the crazy thing about this. Do you guys remember when Tesla was at twelve hundred dollars a share? that means it would have gone from 1200 all the way down to 300 and pretty much forty dollars. Three hundred and forty dollars. The crazy thing about this is that again, you know from its current price level not that this is the bottom, but from its current price level.

If it were to make a full recovery to previous all-time highs, it would offer a 268 return Insane 268 percent. Elon Went from you know being one of the richest people in the world to now taking a pretty big hit on his net worth and I wanted to talk about what exactly is going on, the fundamental reasons on what is causing the selling pressure. First I want to talk about what is causing Tesla to sell off today? Uh well. Tesla Announced today that as in the start of 2023 in January they're going to slow down the production levels in their Shanghai plant and this is due to the shutdowns due to covet avoid.

You know the outbreaks that are going out there going on over there in China So that's the reason the market is selling off today for Tesla Now what has been going on long term right? Well, the entire Market has been selling off for 2022 right? So main contributor On top of that because of higher inflation, the Federal Reserve began to raise interest rates and because of higher interest rates again, a lot of companies began to slow down in their production, right? Also, slim down, uh, their overall uh employee Workforce And because of that I mean it just has been. not just with the shutdown that's going on in China but with how much now more expensive it is uh to obviously borrow money, it's been a negative influence when it comes down to Tesla and its overall production levels as well. Not just for Tesla, but we've seen it with Amazon We've seen it with Facebook. We've seen it with almost every other tech company where they've really had to shed some of that fat off of their company uh, that they were previously trying to Leverage average when the market was extremely bullish in 2020 and 2021.

Right on top of that, when Elon decided to buy Twitter again, the concern that a lot of investors had was where is his Focus going to be and I would say this is kind of like the worst case scenario where Elon had at least it looked like you know I don't know his schedule right, but it looked like a majority of his Focus was definitely trying to run Twitter It's gotten to the point where now he announced that he is no longer going to be the CEO of Twitter right? or he needs someone else to run it so he can return his Focus back to Tesla and back to SpaceX and I Think that's what his investors would appreciate. but as of right now, it's obviously taken a really big hit and then just to be the cherry on top. I'm not too sure if you guys heard this news, but Twitter got hacked. This was either last night or a couple of days ago, but Twitter got hacked.

Supposedly over 400 million users and their information has been stolen and hacked from Twitter itself. They released I think one or two thousand informations of these different accounts just to prove that it's real. and then on top of that, they are offering to sell it to the highest bidder. at least this hackers.

That's the craziness that's currently going on right now with Tesla and Elon and I guess the overall Market itself. Now the question that a lot of people have is, you know, can Tesla drop below a hundred dollars a share? I'm someone that has a position in Tesla I'm not super heavily invested, but I do have an open position and I am telling you this right like it is not in my benefit for Tesla to continue to sell off. but I'm aware that the cheap can always get cheaper and that's what I'm here to remind you: I'm not here just because I'm invested in something to try to encourage you to do the same and do it blindly. You need to understand that markets can always continue to sell off and things can always get worse.

just like what Tesla announced today, right? Simple news of slowing down into production in Shanghai plant is causing the stock itself to sell 7.6 You know, if you have a very heavy position that's nearly one tenth of your you know position, right? So yes, we can easily drop another 10 which would pretty much put Tesla at a hundred dollars a share and or below that right. You can never think that this has to be the bottom. The things can. Always.

things can always get worse. The market can always get cheaper. As of right now, there is a lot of selling pressure with Tesla and one of my biggest suggestions is if you cannot tolerate the time that it will take for Tesla to recover, then do not enter a position a hopeful position. Right now, it is a very risky time to buy Tesla because of its ongoing selling pressure, right? if you do decide to buy Tesla just kind of how I did right the way that I Justified it is.

I really like the price I love the ROI potential I wanted to buy enough of Tesla for me to you know have some skin in the game but not so much that if it continues to sell off an additional 10, 20 or 30 percent that I freak out and that is the balance that I've tried to find Where it's not perfect. my entry is not perfect. It will never be right, but it is effective enough that I see it to be a good enough deal. It kind of goes back to the same concept of again my job as an investor is never to be perfect with my entries and never to be perfect with my exits.

It's just to get in at a good price where I can withstand the time that it will take for this thing to begin to recover and then I can buy more when I get confirmation of that recovery. I don't have to buy everything right now, right? Understand that you have time, understand that things can get worse, and this is why a good way to manage your risk is to manage your position size. At least that's the way that I've always feeding that again. I'm just here to share that with you guys.

So I wanted to talk about these different things about Tesla and what's been going on. It doesn't look like it's on track for an amazing you know, Q4 quarterly earnings report that's going to be announced you know, uh, the start of 2023 and that can even cause more selling pressure. So I wanted to talk about Tesla I Of course wanted to talk about the ROI potential 260 if I'm not mistaken. Right from where we're at right now to based off of previous all-time highs, 268 percent Huge Roi potential.

but you know it comes at its own form of risk and that needs to be talked about right? So do not bite down more than you can chew and understand that you have nothing but time to get into this right? You don't have to try to find the bottom, you can even wait for confirmation of a reversal and try to be a little bit more calculated with your entries and with your exits. So I wish you nothing but the best. If you have any questions about what we talked about today, feel free to send me a direct message via Discord And that's that first link in the description. Friendly reminder Our new trade live every single morning with my Learn Plan Profit Group and that is that second link down below.

If you want the ability to watch me trade live as soon as tomorrow at Market open. Other than that again, we are running our PS5 giveaway and if you want to learn more about that, that's going to be the fourth Link in the description down below. And for those that are asking what trading application am I using I'm using Weeble it's free to download and if you want to earn six free stocks when you deposit one dollar, use my fifth Link in the description down below and you will earn six free stocks when you deposit one dollar. Like always, let's make sure that we're in the year on every now and take it easy team!.

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