Baxia Markets
July 11, 2021

Could Tesla face further losses?

fundamental analysis top header -01

Tesla Inc. shares formed a trading pattern Friday that traders closely watch as it often precedes further losses for the stock.


The short-term average price for the stock fell below the long-term average, forming a so-called death cross. Shares of the electric vehicle maker have been on a rough ride already this year, declining 8%, even as the broader market rose nearly 16%.


The decline reflects growing investor concern about competition from traditional carmakers pushing aggressively into the EV race and the company’s future growth trajectory in China, which is among the world’s biggest markets for automobiles. Tesla unveiled a significantly cheaper version of its Model Y car in the country, even as its China deliveries dropped last month.


Tesla July 9th 2021


The last time Tesla shares formed this trading pattern was in February 2019, and it preceded a more than 40% decline in the share price within 65 days, to $35.79 from $63.98.


Tesla shares dropped as much as 1.2% on Friday in New York. Shares of smaller EV startups also languished, with Workhorse Group Inc. and XPeng Inc. among the biggest decliners in the group.


We love to hear new ideas from traders and want to know what you think! 


If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.


Open Live Account  


Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. 


Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit. 


Subscribe by Email