Is Tesla a good investment for January 2023? TSLA price analysis

On January 8, 2023, an official from the People’s Bank of China provided optimistic statements on the economy’s revival, which lifted global markets and oil prices.

These comments helped propel individual stocks, such as Tesla (NASDAQ: TSLA), higher in premarket, on Monday, January 9, with the TSLA up by more than 7% as the stock regained some ground after hitting a new low Friday. 

Notably, at the end of last week, Tesla shares hit a 52-week low at $101.81, closing about 71% off their 52-week high.

Tesla chart analysis

Indeed, in the last month, TSLA has been trading in the $101.81 – $182.50 range and is currently trading near the lows of this area. Volume has been considerably higher in the last couple of days, and prices have been falling firmly lately, so typically, it is better to avoid new long positions here for the meantime. Tesla was trading at $121.73. +$8.67 and (7.57%) at the time of publication when the market opened.

Tesla 1-day price chart. Source: Finbold

That said, it’s worth highlighting that support is located at $108.10 from a horizontal line in the daily time frame. At the same time, a resistance zone ranging from $123.18 to $123.18 is also formed by a combination of multiple trend lines in various time frames.

Too Musk to handle?

The acquisition of Twitter (NYSE: TWTR) by Tesla CEO Elon Musk has been seen as one of the company’s most significant developments, even though it has nothing to do with Tesla’s operations. 

Senior market analysts have stated that Twitter has become a “huge distraction” for Musk. For instance, legendary investor Bill Miller is betting against the Tesla share price. Miller, a value investor, is shorting Tesla, putting more downward pressure on the stock price.

He told CNBC: “I just don’t think it’s worth more than the top 5 automakers in the world combined.”

It’s not simply his policies over there causing people to criticize him and his public presence for becoming increasingly problematic. 

The price of TSLA stock many consider is now being held back by the fact that he bought Twitter using TSLA shares, which is placing downward pressure on the stock price.

Tesla faces stronger competition

In the United States, Tesla is facing rising levels of competition, particularly in the premium segment of the market. The company’s stake there is now just 65%, down from 79% a year ago. As automobile manufacturers begin releasing models aimed at the mid-market, it is possible that it may decrease much more.

Tesla’s largest manufacturing is located in China, which is also the company’s largest market. Customers, there are dissatisfied with recent price cuts, which have decreased the value of their own vehicles while also reducing Tesla’s profit margins. In addition, the Chinese also have a lot of EV alternatives beyond Tesla, such as Nio (NYSE: NIO), XPeng (NASDAQ: XPEV), Li Auto (NASDAQ: LI), and BYD (OTCMKTS: BYDDF) is currently outselling Tesla due to the fact that the mid-market is growing. 

Notably, this one-day turnaround in Tesla shares paralleled similar reversals in Apple (NASDAQ: AAPL) and (NASDAQ: AMZN), so investors should consider the company’s fundamentals given that most of the negative news has already been priced into its shares.

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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.