Could Reddit Traders Turn On Elon Musk And Target Tesla's Stock?
If Elon Musk continues to negatively impact Bitcoin (CRYPTO: $BTC) with social media commentary, there is a chance Reddit traders could turn against him and try to negatively influence the share price of Tesla Inc (NASDAQ:TSLA), co-host Joel Elconin said Monday on Benzinga's YouTube show "PreMarket Prep."
"There is an argument there," co-host Dennis Dick said.
Dick mentioned that he has seen revenge talk on Twitter, but it is harder for the Reddit crowd to move a stock down because most retail traders do not short stocks.
Tesla is one stock Dick would "absolutely not want to own," he said, adding that if he had a list of 10 worst stocks to own, Tesla would be on it.
See also: How to Invest in Tesla Stock
Tesla Analysis: Tesla is in a clear downtrend and the market is currently favoring value, Dick said, also mentioning that Tesla is the opposite of a value stock.
Elconin said that from a technical standpoint, Tesla looks unfavorable.
Investors should wait to see a green candle on a monthly chart before considering the stock, Elconin said, noting that he does not expect to see a green candle this month. Dick agreed with Elconin saying that the technicals "look broken."
Eventually, Dick expects the stock to trade below $400 per share.
TSLA Price Action: At last check Monday morning, Tesla was down 1.45% at $581.17.
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