Tesla, Inc. shares TSLA are poised to extend their decline for a third consecutive session, weighed down by many ongoing concerns. In premarket trading on Tuesday, the stock dipped 1.98% to $161.48.
A breach of this price point would mark the first time the stock has fallen below $160 since May 4, 2023.
Confirmation of a significant layoff, including high-profile and longtime executives, eroded roughly $30 billion from Tesla’s market capitalization on Monday. The stock closed Monday’s session down 5.59% at $161.48, according to Benzinga Pro data.
The extended selloff witnessed in Tuesday’s premarket stems from anxieties surrounding the company’s upcoming first-quarter earnings report, due next week. Following the layoffs, analysts are now anticipating a potentially negative report. Additionally, rumors of Tesla shelving its sub-$30,000 electric car project have been met with disapproval on Wall Street.
Sentiment could be further impacted by weak weekly China insurance registration data for Tesla vehicles. Tesla bear Gordon Johnson shared data on Tuesday showing a mere 6,000 registrations for the week of April 8-14, following an already disappointing 1,907 units registered the week prior.
Describing the numbers as “horrific,” Johnson suggests they could negatively impact Tesla’s performance in China, a key market.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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