Tesla’s (TSLA) shares can slump to $170-$180 “in weeks,” Gareth Soloway, Chief Market Strategist of Verified Investing said recently on Schwab Network. However, Soloway believes that the shares may bounce significantly once they reach those levels.
Meanwhile, the strategist is very bearish on the stock market as he thinks that U.S. equities could tumble 30%-50% from their peak to the bottom.
Soloway’s Technical Analysis of TSLA Stock
The automaker’s shares look poised to drop in the near term, as there is a trend line from its low of January 2023 that connects to its low of April 2024, while the two trend lines will meet at the $170-$180 level, the analyst explained.
However, once the shares reach the latter level, they will be well-positioned to climb by 10% to 20%, according to Soloway.
The Analyst’s Very Bearish Macro View
The uncertainty over trade “will drag on for months, pushing (the U.S.) towards a recession later this year,” Soloway warned. Although trade deals could push the stock market higher in the next week, Soloway thinks that the lows of around three weeks ago could be taken out, opening the door for very large, additional declines.
After the U.S. debt rose and as tariffs are poised to push inflation higher, the U.S. could enter another Great Recession, the analyst warned. “At the very least we’re due for a lost decade for stocks, and we may not see new highs (on the stock market) for 10+ years,” Soloway stated.
A 30%-50% plunge for stocks is a possibility, he believes.
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This article is originally published at Insider Monkey.
