One of the hottest stocks since last year, TSLA is showing signs of a potential deep correction as the price created a series of higher highs while the RSI created lower highs to form multiple bearish divergences. These divergences were also supported by decreasing volume, implying decreasing demand among investors. Price-volume relationship also tells the stock is entering into a bearish territory.
As of 8:54 AM EST, Tesla is down 3.55% on pre-market opening after CNBC reported that CEO Elon Musk sent an email to employees on Tuesday warning they will have to control costs or the stock will immediately get crushed like a souffle under a sledgehammer.