The stellar run of Tesla share price was given a rude awakening after a German court found that a Tesla car ad which claimed that its cars could run autonomously contained misleading information. The case, which was brought to a Munich court by a German anti-trust agency, was decided against Tesla, subject to a possibility for appeal. As such, Tesla can no longer run ads that contain what the court deems is misleading information about its driver assistance systems.
This news was enough to halt the steep advance of Tesla share price activity late yesterday, enabling it to close 3.08% lower at 1497.06 yesterday. It opened with a downside gap, but bulls are working feverishly to close the gap on the day. Traders bullish on Tesla share price activity are facing headwinds on a day in which the Nasdaq 100 is seeing a brutal selloff.
Technical Outlook for Tesla Share Price
The steepness of the ascent of Tesla share price renders it vulnerable to a further pullback. If today’s candle ends in the shape of a pinbar as is the case presently, this would strengthen the case for a possible drop to retest the 1433.50 price support, formed by the previous high of 7 July and today’s intraday low. A breakdown of that price level brings in 1307.51, with 1134.35 also standing in as possible support if the selloff continues.
On the flip side, the highs of this week remain the nearest upside target, but further advance towards record territory has to follow a break above yesterday’s high at 1792.02.