Tesla Inc TSLA was trading 7.5 percent lower on Friday afternoon following a tweets from CEO Elon Musk mocking the Securities and Exchange Commission (SEC) on Thursday evening.
Elon Musk settled charges levelled by the SEC that in an August 7 tweet he used false information to manipulate Tesla’s stock price. The settlement involved stepping down as chairman of Tesla's board of directors and a $20 million fine.
After Thursday’s market close, Musk tweeted, "Just want to [say] that the Shortseller Enrichment Commission is doing incredible work. And the name change is so on point!" Interestingly, it was Musk’s tendency to voice his frustration with short sellers that led to the charges. The SEC has not commented on his latest antics.
In analyzing the market cycles for Tesla in the chart below, we can see that the stock is pulling back, but early in the rising phase of its intermediate cycle. The odds are high that it will rebound. Once this dip is over, we expect the stock price to increase along with the rising phase of the new cycle. Yet we expect the rally to fail in the $305-320 resistance zone.
Tesla Stock Chart with Weekly Bars
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