Well, Hertz is selling it entire EV fleet, which is comprised mainly of Tesla’s. They’re selling them at a loss, and blaming it partially on Tesla’s decision to drop the price of its cars.
That’s not the worst part. They’re selling the Tesla’s in order to replace them with gas-powered cars. The ESG movement has been battered recently, and obviously Tesla is at the center of it.
I think the stock will continue to get battered over the short term. But let’s see what the chart says.
The 9-period SMA is still crossed below the 20 – a bearish signal. New lows keep getting tested by the wicks, which tells me the market is still looking for a solid bottom.
Yesterday, Tesla finished around the VWAP, so I’m fairly confident that we could have a big down push at market open.
Trade Idea:
Price Target: $224
Options Contract: 19 Jan 24 $225 PUT