Tesla (TSLA.US) stock came under pressure today due to two primary factors. First is the death of two men in one of the company’s vehicles over the weekend. Car crashed into a tree and burst into flames and Police officials are nearly certain that no one was behind the wheel at the time. It is still uncertain whether the car’s “Autopilot” system was engaged when the accident occurred on Saturday.
Secondly, a single protester at an auto show in China staged a protest against the company. Woman wearing a white T-shirt with Chinese writing that translated as "Brake Lost Control", climbed onto a red Model 3 in Tesla's modest booth, before being dragged away by security. The woman claimed the brakes of her Model 3 failed and four of her family members were almost killed in an accident, Shine News reported last month. However, Tesla said vehicle data showed the car was travelling at almost 120 kilometers per hour and the car's braking and emergency-warning systems had functioned properly. Given the recent boycotts by the Chinese government against other Western companies, some suspect that the protest was used to put pressure on Tesla. This is important as China is expected to be Tesla's largest domestic market in the coming years.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Tesla (TSLA.US) stock fell more than 6% today, however sellers failed to break below the lower limit of the ascending channel and price returned to the major resistance at $716.24 which is additionally strengthened by 50 SMA (green line). Source: xStation5
-----------------------------------------------------------------------------------------------------------------------------
Watch this video to master short selling strategies
