Tesla Shares Trade Lower On Germany Gigafactory Delays

Tesla stocks are down this Monday after the company announced a delay in production at its German giga-factory by 6 months.

According to media reports from the German magazine Automobilwiche, regulatory snags are responsible for the delays. In addition, delays have been caused by plans to add a battery cell production unit to the facility. 

This is not the first time that Tesla has had issues with the factory in question. Before the coronavirus pandemic, environmentalists had blocked construction at the site after they said the clearing of the massive forest land to be used for the facility threatened an endangered species of snakes. Tesla’s shares are down 3.45% on the news of the delay as of the time of writing. 

Technical Outlook for Tesla

Tesla stocks resume the downward slide after a brief respite offered by Friday’s recovery move. This downward push has put the 693.75 support price at risk, with a successful break allowing bears to pursue the 61.8% Fibonacci retracement of the C-D wave in the “W” pattern at 671.61, with other targets at 654.12 and 640.00 (78.6% Fibonacci retracement) respectively.

On the other hand, a bounce from 693.72 (50% Fibonacci retracement) allows the price to target the 743.70 price resistance, with 784.76 and 820.076 serving as additional targets to the north.

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Tesla Stock Price; Daily Chart

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