Tesla Sell-Off Continues Into 7th Straight Session — Here's Why The Stock Is Tanking

Shares of electric vehicle maker Tesla Inc. TSLA were trading lower in premarket trading on Tuesday.

What Happened: A couple of negative catalysts could be weighing down on the stock at the start of the new trading week. Reports over the weekend suggested that the company preponed plans regarding the shutdown of its Giga Shanghai plant.

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The company reportedly told employees to take their vacations on Saturday as opposed to the earlier rumored timeline of Dec. 25 to Jan. 1.

A second trigger could have been a warning from Chinese startup Nio Inc. NIO, which reduced its delivery guidance for the fourth quarter, citing the COVID-19 situation in China.

In premarket trading, Tesla shares fell 2.06%, to $120.61, according to Benzinga Pro data. The premarket move suggests the stock could have a down-session for a seventh straight time.

Key downside support to watch for would be the $110 and $94 levels, which were the upper and lower bounds of a consolidation region during the period between July 2020 and August 2020.

On the upside, it has resistance around $139 and its 200-day moving average of $164.85.