TESLA SLASHES MODEL 3 PRICES, STOCK TECHNICALS BREAKDOWN
In the Premarket trading session on Monday, Tesla’s stock was trading at 311.60- lower by 2.55% as compared to its previous close.
In recent news, the California-based company has cut prices of its Model 3 electric car in China. According to the company’s Chinese website, prices of certain Model 3 cars were slashed by up to 7.6%. The starting price of a Model 3 electric car in the country now is $72,000.
It was the third time in the last two months that the electric carmaker has adjusted its prices in China. In November, Tesla slashed the prices of its Model X and Model S cars between 12 and 26 percent.
Earlier in December, the company slashed prices on its Model S and Model X after Chinese finance ministry announced it would suspend additional tariffs on U.S.-made vehicles and auto parts for three months from January, lowering the cost of importing U.S.-produced Tesla cars into China for sale.
In other news, Tesla’s CEO Musk said on Saturday that the company will reimburse customers if delays to car deliveries cause them to miss out on a significant tax credit.
On the technical front, the current price is below the MA5 (330.28) and MA20 (349.38). The current price is below the lower band of the Bollinger Bands and is heading downwards. The stock is expected to trade lower today.
TRADE SUGGESTION- LIMIT SELL AT 312 TAKE PROFIT AT 308 STOP LOSS AT 314