Will Tesla crash another 10% on China sales decline?
Tesla shares are already down ~36% from its all-time high price level of ~$900.00 recorded at the beginning of the year.
However, the electric vehicle company's fall from grace may not be over. The shares dropped more than 5% in yesterday’s trading after a damaging report regarding car sales in China.
According to the report, Tesla’s monthly net orders in China dropped to just 9,800 May from more than 18,000 in April. Tesla has been struggling with safety investigations and recalls in China, as well as a public relations backlash.
Source: Admirals MetaTrader 5, #TSLA, Monthly - Data range: from Aug 1, 2013, to Jun 3, 2021, performed on Jun 3, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.
As investor sentiment is very weak regarding Tesla, there is potential for its share price to continue to fall to horizontal support around ~$500.00. This would record a more than 10% drop from current levels.
Considering China is the second-largest electric vehicle market in the world, how Tesla performs there will be critical to the company’s growth plans. Especially, as they compete with rivals such as NIO and Xpeng.
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