Tesla’s stock dropped more than 2% to $644.65 on Wednesday.
After DIDI, TSLA is feeling the heat from Chinese concerns.
Tesla and other EV manufacturers have seen a surge in deliveries.
Tesla’s strong positive trend, which had been in place since the middle of June, came to an abrupt halt on Tuesday when the stock lost over 3%, followed by a 2% decline on Wednesday. Tesla has nearly retraced to the $635 level, which was the starting point for the remarkable surge higher.
Tesla’s crucial figures
Price/Earnings 660 Price/Sales 23 Price/Book 28 Enterprise Value $753 billion Market Cap $621 billion
Net Margin: 0.21 Gross Margin: 0.21 Gross Margin: 0.21 Gross Margin: 0.
0.03
$657, average Wall Street rating and price target
Tesla’s stock dropped further more on Wednesday, as investors were wary about a potential read-across from the DIDI crisis. Tesla has already faced data concerns in China, including issues with cameras and vehicle data.
Tesla had built up a local server in China to store automobile data, according to Reuters on May 25. Tesla automobiles were previously restricted from several government compounds, according to a May 21 Reuters article, due to worries about cameras mounted in the Tesla vehicles.
Daniel Ives, a Wedbush analyst, stated, “The Didi action from Beijing has made China-exposed companies like as Tesla apprehensive. […] Investors are concerned as China and Tesla continue to engage in a regulatory back-and-forth.”
A tweet published by Tesla CEO Elon Musk over the weekend, in which he indicated he did not expect self-driving to be too tough, may also be weighing on the company. “Generalized self-driving is a difficult problem to solve since it necessitates the solution of a huge portion of real-world AI. I didn’t expect it to be so difficult, but in retrospect, the difficulty is evident. Reality has more degrees of freedom than anything else.”
The trend has been decisively reversed, and the bears have reclaimed dominance for the time being. As global financial markets tremble, this is unlikely to alter on Thursday. Tesla’s stock has retraced to its 21-day moving average of $648, but it has closed below it. Because the volume support was not strong enough, this was not the greatest zone to purchase the drop. Wait until $630, since this level has support from the 200-day moving average and increased volume, as shown by the volume profile on the right side of the chart. More volume equals more support/resistance in price.
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