Tesla Stock Price and Forecast: TSLA cuts steering component, SEC subpoenas company
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UPGRADE- Tesla stock is stable in Tuesday's premarket after some shaky headlines.
- TSLA closed Monday at $907.34, down just under 2%.
- CNBC reports that Tesla has cut steering components from some cars due to chip shortages.
Semiconductor chip issues are back in the spotlight this morning as CNBC reports that Tesla (TSLA) cut steering components from some cars in order to deal with chip shortages. We will have to wait and see if this affects the stock price. So far in Tuesday's premarket, the effect looks limited with Tesla trading at $906.53, virtually unchanged from yesterday.
Tesla Stock News
CNBC reported late yesterday that Tesla decided to remove one of two electronic control units that are in some China-manufactured Model 3 and Model Y cars. Tesla did not tell customers, and CNBC says that employees did debate whether to tell customers but decided it was not necessary to do so. The change means that Tesla will not be able to turn all existing cars into driverless cars, according to the report. Tesla workers told CNBC that if Tesla goes ahead with a more complex FSD update, then the cars affected will need to get a retrofit steering rack.
We also note reports in The Financial Times and Wall Street Journal from Monday saying that the Securities & Exchange Commission has subpoenaed Tesla about compliance with a court settlement made in relation to Elon Musk's tweets being preapproved. This is linked back to a 2018 settlement when Elon Musk tweeted he had funding approved to take Tesla private. We have not seen the full story.
Tesla Stock Forecast
The 200-day moving average remains the big level below at $820. Also close by is the $843 support, but the 200-day is the more significant level. The downtrend remains intact with $792 and $1,208 the last major highs and lows in the downtrend.
Recent moves have been choppy and directionless, so it remains to be seen if this recent news provides a further catalyst. Breaking above $945 will give bulls some hope in the short term. The longer Tesla remains below $945 then, the more likely it is to fail and retest the 200-day moving average.
Tesla (TSLA) chart, daily
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- Tesla stock is stable in Tuesday's premarket after some shaky headlines.
- TSLA closed Monday at $907.34, down just under 2%.
- CNBC reports that Tesla has cut steering components from some cars due to chip shortages.
Semiconductor chip issues are back in the spotlight this morning as CNBC reports that Tesla (TSLA) cut steering components from some cars in order to deal with chip shortages. We will have to wait and see if this affects the stock price. So far in Tuesday's premarket, the effect looks limited with Tesla trading at $906.53, virtually unchanged from yesterday.
Tesla Stock News
CNBC reported late yesterday that Tesla decided to remove one of two electronic control units that are in some China-manufactured Model 3 and Model Y cars. Tesla did not tell customers, and CNBC says that employees did debate whether to tell customers but decided it was not necessary to do so. The change means that Tesla will not be able to turn all existing cars into driverless cars, according to the report. Tesla workers told CNBC that if Tesla goes ahead with a more complex FSD update, then the cars affected will need to get a retrofit steering rack.
We also note reports in The Financial Times and Wall Street Journal from Monday saying that the Securities & Exchange Commission has subpoenaed Tesla about compliance with a court settlement made in relation to Elon Musk's tweets being preapproved. This is linked back to a 2018 settlement when Elon Musk tweeted he had funding approved to take Tesla private. We have not seen the full story.
Tesla Stock Forecast
The 200-day moving average remains the big level below at $820. Also close by is the $843 support, but the 200-day is the more significant level. The downtrend remains intact with $792 and $1,208 the last major highs and lows in the downtrend.
Recent moves have been choppy and directionless, so it remains to be seen if this recent news provides a further catalyst. Breaking above $945 will give bulls some hope in the short term. The longer Tesla remains below $945 then, the more likely it is to fail and retest the 200-day moving average.
Tesla (TSLA) chart, daily
Like this article? Help us with some feedback by answering this survey:
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