September 26, 2023
London, UK

Tesla Down 8% on Q3 Production Disappointment

TSLA Tesla

Tesla shares are trading 8.42% lower at $242.58 after the production figures published yesterday by the company disappointed analysts and investors.

The company delivered 343,830 vehicles below the Wall Street expectations of 365,000. In the third quarter of 2021, the company delivered 241,300 vehicles.

Tesla also reported that produced 365,293 vehicles in the third quarter, well above the 237,823 cars produced in the third quarter of 2021. Analysts expected the vehicle production to be around 364,000.

The vehicles produced were: 19,935 Model S and X which are the most expensive models and 345,988 Model 3 and Y, higher than last year’s 8,941 and 228,882 production. Tesla will report its 3Q financial report on October 19 after the market close.

Tesla stock has lost over 30% since the beginning of the year and is down 10% in the last month. The company capitalization stands today at 831.15 billion and its P/E ratio stands at 87.69. The S&P 500 is down 23% in 2022 while Nasdaq has lost over 31%.

Tesla Technical Analysis

Tesla Technical Picture has deteriorated sharply today as the price breached below the 100-day moving average. which provided strong support during August and September and now has turned into resistance. The next resistance level stands at $275 the top from September 30. What can cancel the bearish momentum is a break above the 200-day moving average at $290.

On the downside, initial support is at $241 the daily low. The next level to watch on the downside is 237 the low from July 19, which if breached would open the way for $225 the low from July 13. Today the RSI index has accelerated its downward momentum and entered the oversold territory below the 30 mark. Oversold levels can last very long so it is wise for traders to wait until the RSI reverse to an upward slope and cross above the 30 mark.

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