Tesla stock breaks above the 900 mark after robust automotive data from China. Sales of Tesla Model 3s manufacturing in China tripled to 11,095 in May from 3,635 in April. That was a huge 64% drop from the 10,160 cars sold in March. The data provided by the Chinese Passenger Car Association (CPCA). Typically, more vehicles are sold near the end of the quarter.
Passenger vehicle sales in China rose year over year in May, and the news helped push all U.S. automaker stocks higher. Tesla stock is leading the pack. The past 12 months, about 19 million cars, trucks and SUVs were sold in China, down almost 13% year over year. Sales haven’t grown month over month since summer 2018. It has been a prolonged downturn for the car industry, so any growth is a welcome sign. Chinese sales dropped more than 80% year over year in February, at the peak of China’s coronavirus lockdown.
Analysts estimate that Tesla will deliver 66,000 units globally during the Q2. That is down from 82,000 estimated deliveries at the end of March when the first quarter closed. Coronavirus production halts and restarts have made the Q2 numbers hard to forecast, but sales in China in May will help the company match or exceed analyst’s estimates.
The previous week, Elon Musk SpaceX, made history by becoming the first private space company to send astronauts into space. The news boosts Elon Musk’s profile and having a knock-on effect on Tesla stock (TSLA).
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Tesla Technical Analysis
Tesla gapped up on Monday, breaking the 900 mark as the bulls are in full control of the stock. The technical picture is clearly bullish, and higher levels might be on the cards. RSI is approaching fast the overbought area, and that should be a warning signal.
On the upside, first resistance for the Tesla stock is at 933.44 the daily top. Next resistance stands at 946,20 the high from February 19. The next supply zone will be met t record high from February 4 at 968.99.
On the flip side, initial support for TSLA stock stands at 909.16 the daily low. Next support for Tesla will be met at 868.33 the low from June 5. A break below might open the way for the May 29 lows at 805.72.