Shares of Tesla Inc (TSLA) were falling sharply Friday. There is a major Tesla wedge pattern breakdown that should be a red alert to investors. Just yesterday, Tesla opened sharply higher after earnings beat expectations. However, the stock barely ended the day positive and is falling hard today. This is a combination of the insane valuation as well as the surging competition. Just days ago, General Motors (GM) showcased the electric Hummer. Reservations sold out in a day. Nikola (NKLA) and Ford Motor Company (F) are putting out the Badger. There are countless other electric trucks coming to market in the next few years.
On a technical chart basis, there is a major Tesla wedge pattern breakdown and this should be alarming to investors who are long. This breakdown means there is no major support until $330.00 (the stock is currently above $410). If the $330.00 level on Tesla breaks, expect downside to gap fill at $275.00 Interestingly, the $275.00 level is where Tesla was prior to the announcement of its stock split. Almost poetic, it should go back to that level at some point in the future.
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