Tesla Motors Inc Shares Continue To Fall

Tesla Motors Inc TSLA shares have come under heavy selling pressure again on Monday after the stock broke below the September 15 intraday low at $249.13.

With the stock trading at $247.68 in the early afternoon on Monday, it looked increasingly like it will work its way down to the lower edge of the uptrend channel at $230 or so in the coming days or weeks. The prospective move down to $230 is a call Benzinga noted the technical crowd was making on September 16.

What The Bulls Are Seeing

• The bulls love Tesla's great long-term growth story, which hinges on the continued game-changing innovations coming from Elon Musk and friends at the company.
• Estimated growth in revenues for 2015 of 57 percent, along with more than 200 percent estimated earnings growth.
• A technically-strong stock as long as support at $230 holds up.

Related Link: Is Intel Corporation's Pullback The Start Of A Major Sell-Off?

What The Bears Are Seeing

• A valuation (80 times 2015 earnings estimates; P/B of over 30 and P/S of over 13) that prices in perfection 10 times over, making it imperative for the company to execute perfectly and never disappoint.
• A stock that technically is weakening in the short term and that could easily turn outright bearish with a break of the $230 level.

What Do The Charts Say?

In the short term, technicians note that it is likely that the stock of Tesla Motors will continue to drift lower, at least until the uptrend line is tested (at approximately $230 per share). From there, the technicians are currently calling for the rally to re-commence. Any close below $230, however, will turn the chart from bullish to bearish.