Tesla Stock Price and Forecast: TSLA heads for support at 200-day moving average
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFER- Tesla stock suffers again on Thursday, down to 200-day moving average.
- TSLA is high beta and suffering from Chinese concerns after DIDI.
- Delivery numbers have been strong for Tesla and other EV manufacturers.
Update: Tesla stock continues to suffer on Thursday as it loses 2.4% straight away to trade down to $628 in early trading. TSLA stock is now testing support from the 200-day moving average and the volume profile also shows this as a potential support zone. Given the market conditions please use stops when taking positions as volatility is high.
The strong bullish trend in place since the middle of June in Tesla came to a sudden halt on Tuesday when the stock dropped nearly 3% and then this was followed up by a 2% fall on Wednesday. In the process, Tesla has nearly retraced to the $635 level, which kick-started the impressive move higher.
Tesla key statistics
| Market Cap | $621 billion |
| Price/Earnings | 660 |
| Price/Sales | 23 |
| Price/Book | 28 |
| Enterprise Value | $753 billion |
| Gross Margin | 0.21 |
| Net Margin |
0.03 |
| Average Wall Street Rating and Price Target | Hold, $657 |
Why is Tesla stock price falling?
Tesla shares retreated further on Wednesday as investors took a dim view of the potential read-across from the DIDI saga. Tesla has had some data concerns in relation to China previously with issues over cameras and car data.
Reuters reported on May 25 that Tesla had set up a local site in China to store car data. A previous story from Reuters on May 21 reported that Tesla cars were barred from some government compounds due to concerns over cameras installed in the Tesla vehicles.
Wedbush analyst Daniel Ives said, "The Didi move from Beijing has sent nervousness to China-exposed names such as Tesla. [...] China and Tesla continue to be in a regulatory back and forth that is concerning investors."
Also perhaps weighing on Tesla was a tweet sent by Tesla CEO Elon Musk over the weekend in which he said he did not expect self-driving to be too difficult. "Generalized self-driving is a hard problem, as it requires solving a large part of real-world AI. Didn’t expect it to be so hard, but the difficulty is obvious in retrospect. Nothing has more degrees of freedom than reality."
Tesla stock forecast
The trend has firmly been turned around, and for now the bears are back in control. This is unlikely to change on Thursday as global stock markets wobble a bit. Tesla has retraced to the 21-day moving average at $648 but closed below it. This was not the best zone to buy the dip as the volume support was not strong enough. Better to wait until $630 as this has support from the 200-day moving average and also has an increase in volume as can be seen from the volume profile on the right side of the chart. More volume means more price support/resistance.
Like this article? Help us with some feedback by answering this survey:
- Tesla stock suffers again on Thursday, down to 200-day moving average.
- TSLA is high beta and suffering from Chinese concerns after DIDI.
- Delivery numbers have been strong for Tesla and other EV manufacturers.
Update: Tesla stock continues to suffer on Thursday as it loses 2.4% straight away to trade down to $628 in early trading. TSLA stock is now testing support from the 200-day moving average and the volume profile also shows this as a potential support zone. Given the market conditions please use stops when taking positions as volatility is high.
The strong bullish trend in place since the middle of June in Tesla came to a sudden halt on Tuesday when the stock dropped nearly 3% and then this was followed up by a 2% fall on Wednesday. In the process, Tesla has nearly retraced to the $635 level, which kick-started the impressive move higher.
Tesla key statistics
| Market Cap | $621 billion |
| Price/Earnings | 660 |
| Price/Sales | 23 |
| Price/Book | 28 |
| Enterprise Value | $753 billion |
| Gross Margin | 0.21 |
| Net Margin |
0.03 |
| Average Wall Street Rating and Price Target | Hold, $657 |
Why is Tesla stock price falling?
Tesla shares retreated further on Wednesday as investors took a dim view of the potential read-across from the DIDI saga. Tesla has had some data concerns in relation to China previously with issues over cameras and car data.
Reuters reported on May 25 that Tesla had set up a local site in China to store car data. A previous story from Reuters on May 21 reported that Tesla cars were barred from some government compounds due to concerns over cameras installed in the Tesla vehicles.
Wedbush analyst Daniel Ives said, "The Didi move from Beijing has sent nervousness to China-exposed names such as Tesla. [...] China and Tesla continue to be in a regulatory back and forth that is concerning investors."
Also perhaps weighing on Tesla was a tweet sent by Tesla CEO Elon Musk over the weekend in which he said he did not expect self-driving to be too difficult. "Generalized self-driving is a hard problem, as it requires solving a large part of real-world AI. Didn’t expect it to be so hard, but the difficulty is obvious in retrospect. Nothing has more degrees of freedom than reality."
Tesla stock forecast
The trend has firmly been turned around, and for now the bears are back in control. This is unlikely to change on Thursday as global stock markets wobble a bit. Tesla has retraced to the 21-day moving average at $648 but closed below it. This was not the best zone to buy the dip as the volume support was not strong enough. Better to wait until $630 as this has support from the 200-day moving average and also has an increase in volume as can be seen from the volume profile on the right side of the chart. More volume means more price support/resistance.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.