13:31 · 15 June 2020

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
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