Shares of Tesla, Inc. are falling as the company continues to face vehicle sales headwinds. Here’s what you need to know:
Key Points to Consider
- Tesla’s China-made vehicle sales saw a 9.9% year-over-year decline in October.
- The company’s Model 3 and Model Y vehicles made in China fell 32.3% month-over-month.
- Some of the month-over-month declines may be due to the company’s new lower-cost versions of the Model 3 and Model Y, which have not been made available in the Chinese market yet.
Weaker Sales in China and Europe
The reports of weaker sales in China follow plunging new car registrations data from earlier this week. Registrations fell:
- 89% in Sweden
- 86% in Denmark
- 50% in Norway last month
Selling Pressure from Norway’s Sovereign Wealth Fund
Tesla shares may also be facing selling pressure after Norway’s $2.1 trillion sovereign wealth fund said it plans to vote against CEO Elon Musk’s $1 trillion pay package. The fund holds a 1.12% stake in Tesla worth roughly $17 billion.
Statement from Norges Bank Investment Management
“While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk.”
TSLA Analysis
- Tesla is trading approximately 9.7% above its 50-day moving average, indicating a robust short-term bullish trend.
- The stock is also well above its 200-day moving average, suggesting a solid long-term upward momentum.
- The Relative Strength Index (RSI) at 60.47 signals a neutral position, indicating that while the stock is not overbought, it is also not in a strong oversold condition.
Support and Resistance Levels
- Calculated support level is at $439.61, which may act as a cushion against further declines.
- Resistance is identified at $467.00, just below the previous close of $468.37.
- A break above this resistance could pave the way for a test of the 52-week high, while a drop below the support level might trigger more significant selling pressure.
Current Price Action
Tesla shares were down 3.05% at $454.14 at the time of publication on Tuesday.
Additional Reading
For more information on Tesla’s stock performance and market trends, check out our exclusive report on the 12 most-searched tickers and where Apple, Beyond Meat, and Tesla rank.