Tesla, Inc. TSLA posted its first-quarter earnings on Monday afternoon well ahead of estimates. Revenue was up almost 75% and vehicle deliveries more than doubled.
Despite these great results, shares are trading lower.
See Also: Tesla's Revenue Rises 74% To $10.4B In Q1
This should concern shareholders. It could signal there are few investors left who want to buy Tesla shares. If there are no more buyers, the only way the stock can go is lower.
If this does happen, there is a good chance there will be support around the $700 level. This level has been support since April 13. Since then, each time shares fell to that level a small rebound followed. That could happen again.
If this support breaks, it could signal buyers are quickly leaving the market. This could set the stage for a large move lower.
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