Tesla (TSLA) stock is slightly up as the company’s future in the Chinese market gets shaky amid the coronavirus outbreak. Meanwhile, the Bank of America’s analyst downgraded TSLA from neutral to underperforming.Since mid-March Tesla Inc (NASDAQ: TSLA) stock has been rising and aiming for a new all-time high amid the ongoing coronavirus pandemic. However, the bulls seem to be losing the battle as the company keeps on getting negative impacting news, from major markets like China. At the time of writing, Tesla (TSLA) stock is trading at 0.46 (+0.68%). The market cap is 0.90 billion.The company has been negatively impacted by the cheap oil which has made its products less attractive to some investors. However, some are seeing Tesla products as a better alternative since it does not
Topics:
<title> considers the following as important:
This could be interesting, too:
Chayanika Deka writes BIT Mining Settles for M Over Bribery Allegations in Japan Resort License Bid
Wayne Jones writes US Charges 5 for Multi-Million Crypto Hacking Operation
Chainwire writes Mythical Games and Fifa Team Up to Bring New Football Arcade Game ‘Fifa Rivals’ to Mobile Users Worldwide
Jordan Lyanchev writes 0M in Liquidations as Bitcoin Dumps Below K, Ripple Down 10% Daily
Tesla (TSLA) stock is slightly up as the company’s future in the Chinese market gets shaky amid the coronavirus outbreak. Meanwhile, the Bank of America’s analyst downgraded TSLA from neutral to underperforming.
Since mid-March Tesla Inc (NASDAQ: TSLA) stock has been rising and aiming for a new all-time high amid the ongoing coronavirus pandemic. However, the bulls seem to be losing the battle as the company keeps on getting negative impacting news, from major markets like China. At the time of writing, Tesla (TSLA) stock is trading at $710.46 (+0.68%). The market cap is $130.90 billion.
The company has been negatively impacted by the cheap oil which has made its products less attractive to some investors. However, some are seeing Tesla products as a better alternative since it does not pollute the environment more than the fuel run engines.
Despite the many challenges the company has been facing and is currently battling with, it has been able to deliver to its investors. In the first quarter, the price swing was very huge after the price hitting $950 in mid-February and later dropping up to around $350 in mid-March during the coronavirus selloff.
From a technical point of view, in the 4-hour chart, the rising trend is still valid, despite the negative news. If the price can rise and fix above the previous highs, the bulls will win the day and it will be headed to a new high.
However, if the price falls below the previous low, things will not be all rosy for the American electric car maker. With the oil industry stabilizing slowly, the coronavirus heat will remain relevant in the fundamental analysis of the Tesla stock.
How the World is Relating to Tesla and its Stock Market
Tesla and its investors woke to news of an analyst from Bank of America downgrading the shares from a neutral rating to underperform based on valuations. The analyst by the name John Murphy also lowered the target on TSLA by $15 to $485.31.
Murphy also expects the global production volume in 2020 to be 23% lower than the prior year. With the first quarter production already 24% down in comparison to the prior year’s.
The company was also hit after China did announce its report on electric cars adoption and subsidies, whereby Tesla might not be a beneficiary. According to the Chinese, only passenger cars that are cheaper than $42,000 are eligible for the government’s subsidies whereas the cheapest car made by Tesla goes for $46,040.
The new policy is set to take effect from April 23, only spelling more challenging times ahead in Tesla and its Chinese market, which is one of its largest.
In a bid to evolve and adapt to the changing environment, Tesla hired a new board member Hiromichi Mizuno. Mizuno is the former chief investment officer of Japan’s $1.5 trillion pension fund. His experience will be of needed help on the table as Tesla faces likely challenging times ahead.
A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery!