(Bloomberg)-The fans of Elon Musk are known for their dedication to Tesla Inc. (TSLA), but in the current rout of the shares that even deteriorate long -term believers.
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The retreat of Musk’s Electric Vehicle Company, which this year was the biggest decliner in the S&P 500 Index, was so extreme that President Donald Trump intervened on Monday evening and said he would buy a new Tesla to support Musk.
On Tuesday, Trump chose a red model of the Teslas that were delivered to him in the White House. The share rose in New York on Wednesday and put it on the right track to increase the profit while it is trying to organize a rebound after the 15% routine of Monday. But despite the presidential purchase – and the apparent opportunity to buy the dip – Musk’s believers are nervous to wade and to scoop shares cheaply, for fear that the massacre may not be over.
The shares fell 52% compared to the all time in the mid -December from Tuesday and it gave all the profit that it experienced after the elections, when traders gambled that Tesla would benefit from Musk’s close ties with the new president.
“These shares are currently dealing with feelings and the downward pressure wins; There is more room for the shares to fall in the next 30-60 days, ”said Brian Mulberry, customer portfolio manager at Zacks Investment Management Inc., who supervises around $ 21 billion in assets. The shares “can easily fall to $ 200 in the short term or even below.”
Zacks had more than 270,000 Tesla shares from December 31. And Mulberry said that he could see the share again next year above $ 400. But he will remain on the sidelines for the time being.
He’s not alone. Since the price fell below $ 230 this week, at more than $ 400 fewer than two months ago, analysts from Wall Street-even some with a buy-resistance and more cautious position have taken. Just last week at least four analysts lowered their price goals on Tesla, while two other long -term bullish analysts warned of poor sales and “negative” sentiment.
One of the few support sources has been the retailers who belong to Musk’s most reliable fans. These small investors bought $ 2.8 billion in Tesla shares on Tuesday’s network, according to Emma Wu, a global quantitative and derivative strategist at JPMorgan Chase & Co.