Tesla and Apple become competitors
What happened?
Tesla fell on the same day it joined the S&P 500 as Apple announced the launch of an electro vehicle in 2024. The tech giant will use its own battery technology and may become the real competitor to Tesla. Now Apple is the largest company in the S&P 500 list by the market cap. Elon Musk’s company takes the prestigious 5th place and it is the most valuable company these days ever admitted to the S&P 500. Tesla has managed to rose by almost 700% so far in 2020, and its market value is about $616 billion. Although many investors believe it is overvalued, it continues increasing its value no matter what.
Interesting fact
Tesla is the most traded stock by value on Wall Street. $18 billion have been exchanged on average in every session over the past 12 months. Apple takes second place with average daily trades of $14 billion, according to Refinitiv.
What’s next?
Congress approved the US stimulus package. Donald Trump is expected to sign it, and the deal is done. It would improve market sentiment if there is no new Covid-19 strain in the UK. However, the ‘covid fears’ overshadowed the positive stimulus news as it may lead to fresh restrictions on businesses.
“Investors appear to be treading more cautiously ... getting more selective and probably waiting for the new mutant virus to be better understood before aggressively diving back into the airlines, travel and leisure-vaccinated bandwagon,″ according to Axi.
Technical tips
Tesla is trading in an ascending channel. Now the risk-off sentiment prevails on the market, therefore, the stock price may fall further till it reached the strong support level at the intersection of the bottom of its range and the low of December 16 at $620.00. If it crosses it, the doors towards the key psychological mark of $600.00 will be open. It should definitely limit the stock from going lower. Resistance levels are $680.00 and $700.00.
