Warren Buffett’s Wisdom: Analyzing Tesla’s Oversold Status

Legendary investor Warren Buffett once advised to “be fearful when others are greedy, and be greedy when others are fearful.” A practical approach to gauge market fear is through the Relative Strength Index (RSI), a technical analysis tool that measures momentum on a range from zero to 100. A stock is considered oversold when the RSI falls below 30.

Tesla’s RSI Indicates Oversold Condition

In trading on Thursday, Tesla Inc (Symbol: TSLA) entered oversold territory with an RSI reading of 28.4, after trading as low as $234 per share. In comparison, the S&P 500 ETF (SPY) has a current RSI of 29.6. Bullish investors might view Tesla’s 28.4 RSI as a sign that the recent aggressive selling may be running its course, potentially creating favorable buying opportunities.

Performance Overview of Tesla Stock

Looking at the chart, Tesla’s low point in its 52-week trading range is $138.80 per share, while the high point is $488.54, comparing to a recent trade price of $236.11.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.