Tesla Price Collapse – Contrary Indicator Supports a 90% Decline

The same honor was bestowed upon Jeff Bezos in 1999, before an epic 94% decline in Amazon. Will a similar fate embrace Tesla? The parallels described in this article are too obvious to ignore.

Amazon 1999 & Tesla 2021 Parallels

AMAZON CHART 1997 to 2003: Amazon went public in May 1997. Prices exploded higher, rallying 5X over the next 10-months. In 1998, the bubble phase began – prices rallied 14X from the May $7.10 bottom into a double top. The final bubble top (4) arrived in December 1999, On December 27, 1999 (5) Bezos was named person of the year. Prices collapsed 94% from the peak and finally bottomed in 2001.

TSLA NOW (2021): The similarities between Amazon’s 1997 to 1999 bubble and Tesla’s 2019 to 2021 run are too obvious to ignore. From the June 2019 low, Tesla rocketed 5X in just 7-months. After the March 2020 low, the bubble phase began with prices rising on average 14X.

The initial momentum peak (2) arrived about 416-trading days from the start, with the terminal peak (4) landing less than a year later. Elon Musk was just named person of the year (5) 633-Days from the start (Bezos was named at 653-Days).

I have a maximum crash target between $55.00 and $85.00 by 2023. With a moderate downside price of $150 upon a confirmed breakdown below $500.

Progressive closes below $900 in Tesla would support our most bearish outlook.

AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For regular updates, please visit here.