Tesla is checking where is the bottom and future of electric car

NASDAQ:TSLA   Tesla, Inc.
As for yesterday Elon Musk announced that he's planning to reduce staff by 10% and freeze recruitment as he has very bad feeling about economy and Tesla stock dropped by around 9% following previous drops since ATH in November.

Comparing to the dollar strength index graph we can see that Tesla similarly to many "mainstream" stock experienced high growth since march 2020 because of weak dollar and printed money which flooded the economy and most of the people ran to buy prosperous stock or crypto.

Now during the high inflation period high interest rates value is dropping (and dollar strengh index raising) as people prefer to keep stronger dollar but it's not going to last forever since in expected recession in Q3 or Q4 of this year FED and other central banks will have to decide whether to continue policy with higher interest rates or lower to speed up the economy.

What about the future?

This may not sound good especially if you are living in Europe. Fuel prices became crazy already in all European countries. Seems like EU is using the war between Russia and Ukraine to ban completely fossil fuels to push people to use electric or other "green" cars. Ban for Russian oil could be just the first step unfortunately. Moreover in next 2 years European countries will have to impose new tax for cars powered on fossil fuels and in 4 years another tax, even higher.

Following this situation the demand for electric cars will grow in the next years (alongside with people who can't afford new electric car and will be forced to buy old non-electric car because of the taxes). Tesla is already known as main electric car producer and their stock show grow in long-term. In short term however can drop to around 500 USD (fibo 0.618 level is at 515 USD). I will be looking for buying opportunities at around this level.

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