Tesla stock continues to decline

Tesla (TSLA.US) shares were down more than 3% in Monday’s premarket after falling on Friday by nearly 4% to $935.28 following analyst downgrades from two major banks. Morgan Stanley downgraded company’s shares to underweight from equal weight, saying that risks tied to its China business were not priced into the stock. Goldman Sachs downgraded Tesla's stock to neutral because of its high valuation. The Goldman analysts said they continued to hold a “positive” long-term view of Tesla, but the shares are trading above their 12-month price target of $950.
Recent data have been mixed. Tesla recently lowered prices on several models, which was unexpected, and compressed lead times for Model Y deliveries. On the other hand, there has been new government financing assistance for electric-vehicles in Europe, and Tesla reported “solid” May deliveries in China.

Tesla (TSLA.US) stock price is slowly approaching major support at $869.92, which is additionally strengthened by the upward trendline. If sellers will manage to push the price below it, then next support at $758.89 may come into play. However if buyers will manage to halt declines, then upward move toward $1028.65 may be on the cards. Source: xStation5

The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.