Tesla stock started lower the session after news that National Highway Traffic Safety Administration (NHTSA) announced that it is investigating failures in 2012 through 2015 Tesla Model S. The Safety-agency has received 11 complaints about the screens the last 13 months in cars that have been in use from 3.9 to 6.3 years. If the screens fail, the Tesla cars will lose the rear camera display, causing low visibility.
Tesla stock continues the correction from all-time highs at 1027.48 that hit on June 10th. Analysts now expect that the car sales would plunge in the second quarter and the drop in demand will continue until the end of the year amid the coronavirus crisis.
Tesla valuation is extremely demanding at the current price as it is more than double than the valuation of Volkswagen, which sold 10 million vehicles in 2019; Tesla sold only 365,000 cars.
Tesla bulls betting on Cybertruck as a positive catalyst for 2022 and expect the announcement for the location of the new factory, with expectations pointing that the new factory would deliver 175k to 200k Cybertrucks.
Download our Q2 Market Global Market Outlook
Tesla Daily Technical Analysis
Tesla trading 3.83% lower at 963,41, making fresh seven days lows as the correction from record highs accelerates. The technical outlook is bullish, and the pullbacks could be considered as a buying opportunity. The RSI index has exit the overbought area.
On the downside, first support for Tesla stocks stands at 953.14 the daily low. Next support will be met at 906.58 the low from June 15. A break below might open the way for a test of the 50-day moving average at 842.57.
On the other side, initial resistance for the Tesla is at 1000.88 the daily high. Next hurdle stands at 1017,70 the high from June 16. The next supply zone will be met at a record high from June 10 at 1027.
Don’t miss a beat! Follow us on Telegram and Twitter.
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Nikolas on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.