Tesla (TSLA.US) stock skyrocketed over 6.5% on Thursday after Reuters reported that the EV producer is gearing up to increase production in Shanghai factory to nearly 20,000 vehicles per week for February and March as recent price cuts sparked demand among clients. If these plans come true, the Chinese factory could produce more than 1 million vehicles in 2023, which would make it easier for Elon Musk to meet his ambitious goal of delivering 2 million cars this year.
However future gains are a concern. In China company lowered prices by as much as 24% since September, according to Reuters. In the US company cut prices as much as 20% last month, which shocked both markets and its competitors. However in the long-term this may have a negative impact on Tesla financial results.
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Tesla (TSLA.US) stock launched today's session with a bullish price gap and is moving towards psychological resistance at $200.00 per share, which is also marked with previous price reactions. One need to bear in mind that Tesla stock price rose over 90.0% from January lows, and investors may decide to take profits around the aforementioned resistance level. Also bearish divergence on the Momentum indicator warns against a potential downward correction. On the other hand, sentiment around the tech sector seems to improve after the recent FED decision and META quarterly figures. If earnings reports from 3 US megatech stocks - Apple, Amazon and Alphabet surprise on the upside after market close, then this could provide further fuel also for Tesla bulls. Source: xStation5
