Honestly, I think a huge chunk of the downturn is self-inflicted. More Tesla derivatives are traded than any other company. There was almost certainly more Tesla bought on margin than any other large company. Likely more than the next 2 combined.
So much options investing and margin trading has caused massive follow-on effects. The greedier we got, the bigger the weaknesses for the shortz to exploit. Buying Calls? MM need to short the stock to derisk. Buying shares on margins? Surprise, margin call!
Selling shares and buying calls? You are effectively doubling your shorting power even as you are telling yourself you are long TSLA.
I've seen many here have suggested that they are "Invested" in Tesla when what they have actually done is buy calls or use other derivatives which in turn give the MM and shorts more tools to apply against us. Eventually this will unwind and we'll come out the other end, but we've given them so many levers to pull it might last a while longer.
All of this combined with Musk's sales, shutdowns, rising interest rates, COVID in China, war in Ukraine, etc. While we've been leveraging up, what we've really done is given the shorts plenty of leverage to use against us.
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