Tesla Stock Price Drops Despite An Uptick In China Deliveries
Tesla stock (NASDAQ: TSLA) price turned red in the premarket session on Tuesday. The stock for the EV manufacturer rose by 12% last week before closing the week at a 5% loss. The stock is trading at $244 after a 0.35% drop in pre-market session.
The decline in the stock for Tesla is aided by China announcing a slow recovery in the service sector. Investors expect a significant fall in demand from the world’s second-largest economy. The rising treasury bond yield is acting as a headwind for the US equities.
Tesla Sales Increase In China After Price Cuts
Tesla announced the delivery of 84,159 vehicles in China for the month of August. These sales figures were 31% more than last month’s and a 9.3% increase from last year’s figures. Analysts have recently noticed Tesla’s removal of key features in the remodeled Model 3. They predict another price cut for the Model 3.
In other news, Tesla has announced to spend $2.8 billion to buy Australian lithium, compared to $1.3 billion last year. The carmaker listed the increased demand for their cars as the reason for the increased budget. Tesla stock price currently stands 136% above its 2023 low.
Tesla Price Forecast
The chart for NASDAQ: TSLA shows the price retesting the key trendline which acts as a diagonal support. Previously, the bears broke below the trendline and made a new monthly low at $214. Currently, the price stands 14% above the August low of $214.
The Tesla stock price forecast can flip bullish if the price bounces from the $240 level. In this case, the bulls may target the $281-$290 price gap which remains unfilled. However, a bearish leg can be expected if the price breaks below the $240 price level.
In the meantime, I’ll keep sharing the updated Tesla shares and my personal trades on my Twitter, where you are welcome to follow me.