Bearish Proxy
With Twitter shares no longer trading on the open market, haters may turn to TSLA as a bearish Proxy to punish Elon.
Tesla Price Chart
Below is the daily chart of TSLA. Prices have held support for 2-years. If it breaks now, it could trigger cascading stop losses lower. The next 2-weeks are crucial.
- Tesla is testing critical support near $180.
- Twitter bears can no longer short the stock after
Elon took TWTR private.
- Worst-case scenario: The bears use TLSA as a proxy for Twitter crashing prices below the 2021 lows.
The FTX Fallout Could Hurt Tesla
I admit this is a stretch but hear me out: The same money that likes to invest in crypto also loves Tesla. If you’re invested in one, there’s a high probability you own the other.
FTX was one of the primary brokers for big institutional money. The money stuck in FTX is off the table, and big money may have to liquidate other investments (Tesla???) to balance their books.
FTX Bankruptcy Update
The CEO who oversaw the Enron Bankruptcy is now in charge of FTX. In a filing with the U.S. Bankruptcy Court for the District of Delaware, he stated that “in his 40 years of legal and restructuring experience,” he had never seen “such a complete failure of corporate controls.”
The dominoes continue to fall as lending and brokerage firm Genesis recently suspended withdrawals. The devastation in crypto could have further to go. Keep a close eye on Bitcoin, Tether, and Binance heading into December.
If FTX was one of the primary brokers for big institutional money, and they’ve blown up, then institutional clients are probably looking for the door out.
A rush to the exits could trigger a cascading liquidity event rivaling the 1929 stock market crash. Anyone that suspends withdraws is saying they are bankrupt, or at a minimum – insolvent.
Quick Take: Tesla shares could be on the verge of an epic breakdown. It could get nasty if prices fall below $170
AG Thorson is a registered CMT and an expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For more charts and regular updates, please visit here.