Tesla Stock Set To Drop Again After Rebound: What's Going On?

Tesla, Inc. TSLA shares dipped before the opening bell on Tuesday as demand concerns and EU regulatory scrutiny added to lingering worries amid a lackluster market.

As of premarket data, the stock slipped 1.17% to $244.10, according to Benzinga Pro data. The last session saw a brief rebound following a three-session decline, closing at $246.99.

Weekly China car insurance registrations for the week ending Sept. 24 totaled 13,500 for Tesla, according to Future Fund’s Gary Black. Quarter-to-date registrations in China stood at 134,000 units, falling short of the Q2 record of 156,700 EV deliveries.

The fund manager does not see a resurgence in the final week. “We believe there are no Highland M-3s being delivered in China until Oct, and there are few if any old M-3s left to sell this quarter in front of the Highland delivery start,” he said.

Tesla is expected to report its Q3 deliveries next week, with analysts, including Black, anticipating lower-than-expected figures.

Additionally, Bloomberg reported that EU regulators have uncovered Chinese subsidies benefiting Tesla and other domestic EV manufacturers like BYD and Nio. This investigation aims to assess the extent of China’s support and consider regulatory measures to maintain fair competition within the domestic auto industry.

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See Also: Everything You Need To Know About Tesla Stock