Tesla (TSLA.US) stock fell more than 7.0% in premarket after disturbing news from China emerged. According to China's Passenger Car Association, Tesla sales declined 27% in April from March. Electric car maker sold 25,845 vehicles made in China in April compared to 35,478 vehicles sold in March. Still that was up from January sales of 15,484 vehicles and February sales of 18,318 vehicles. Also Reuters reported that Tesla decided to suspend its plans regarding acquiring more land in order to expand its flagship plant in Shanghai into a global export hub.
Tesla (TSLA.US) stock broke below the lower limit of the triangle pattern yesterday and launched today's session sharply lower as well. However buyers managed to regain control and are trying to erase recent losses. The nearest resistance to watch lies at $654.21. Nevertheless in the short term trend remains downward. The next major obstacle for bears is 200 SMA ( red line). Should break lower occur, then support at $507.53 could be at risk. Source: xStation5
