- TSLA stock plummets as Shanghai lockdown hits stock.
- CEO Elon Musk refuses a seat on Twitter board, signs deal with Block on BTC mining project.
- Tesla is due to report first-quarter earnings on April 20.
Tesla (TSLA) stock is under pressure this morning with multiple newsflows in evidence. Tesla lost ground on Friday as it closed 3% lower and so far is replicating that loss in Monday's premarket. Fears over lockdown in China are hurting TSLA stock as are supply chain issues and input costs.
Also read: MULN stock roars back as bulls take on Hindenburg and Bitnile chimes in
Tesla (TSLA) stock news: Newsflows all over the place
Tesla CEO Elon Musk is rarely out of the news and certainly made headlines last week when his 9.2% stake in Twitter (TWTR) stock was unveiled. However, this has now taken a fresh twist with Twitter CEO Parag Agrawal saying that Musk has turned down the offer to be a member of the board of TWTR.
This brings up some interesting questions none of which we can answer. Probably most importantly does this mean Elon Musk wants a bigger stake in Twitter? Being on the board would have restricted Musk to a maximum stake but now he could go hostile if he is determined to take over the company. That seems unlikely. Perhaps as a board member, he may not have been as free to tweet as he would like.
Whatever the reasons, it keeps investors in Tesla and Twitter guessing.
Tesla shareholders will be more concerned with what is happening in China. Shanghai is in a state of lockdown and Tesla's giga-factory was forced to suspend production. NIO and other EV makers have also been affected, but Tesla is due to release earnings for the first quarter in two weeks and the latest data is not promising.
Tesla assembled 55,462 units in China during March, compared to 68,117 in January. This is likely due to the aforementioned lockdowns. China is the world's largest EV market and recent signs are not good on a macro level. This morning we had a very high CPI number from China, meaning recent monetary policy loosening will now be more difficult to pursue. Also out this morning was data showing a drop in vehicle sales of 11.7% in March. The combination of a slowing Chinese market and limited Chinese production is not ideal.
Separately, Tesla has reportedly entered into an agreement with Jack Dorsey's Block (SQ) on a Bitcoin mining project. Block and Blockstream are trying to show that Bitcoin can be mined using renewable energy.
Finally, Reuters has reported that Tesla is to build a solar-powered facility in Texas.
Tesla (TSLA) stock forecast
The recent TSLA stock rally was exceptionally strong and caught many investors by surprise. This was market-wide though and not all down to Tesla. The failure to make a new high signaled we remain in a long-to-medium-term downtrend, though. We still have a series of lower highs and lower lows.
The next target for TSLA stock should be to make a lower low, which means breaking $700. Resistance at $1,208 is the last major high, if that is broken then the downtrend is over and record highs beckon. The first target and support are $945. The recent move higher saw a sell signal from both the MFI (money flow index) and RSI (relative strength index).
Tesla (TSLA) stock chart, daily
*The author is short for Tesla.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays defensive near 1.1350 as US Dollar looks to stabilize
EUR/USD remains on the back foot for the second consecutive session, trading near 1.1350 in the European trading hours on Tuesday. The pair weakens as the US Dollar attempts to regain stability amid the US-China trade war and growing concerns over US recession. German/ EU data are awaited.
GBP/USD battles 1.3200 after UK jobs data
GBP/USD is defending minor bids near the 1.3200 mark in the early European session on Tuesday. The latest data from the UK showed that Unemployment Rate steadied at 4% in the quarter to February while Average Earnings disappointed, weighing negatively on the Pound Sterling.
Gold price retains its positive bias above $3,200 amid US-China trade war, bearish USD
Gold price regains positive traction as US tariff uncertainty continues to underpin safe-haven assets. Bets for aggressive Fed rate cuts in 2025 keep the USD depressed and also benefit the XAU/USD pair.
XRP resilient amid looming ETF deadlines
Ripple (XRP) flaunted a bullish outlook, trading at $2.1505 at the time of writing on Tuesday. Investor risk appetite has continued to grow since the middle of last week, propping XRP for a sustainable upward move, eyeing $3.0000 psychological level.
Is a recession looming?
Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.