Tesla Shares In Reverse Gear Premarket: Will They Test $200 Support Level?

Tesla, Inc. TSLA shares were more than 2% lower in premarket trading on Monday.

The Texas-based electric vehicle pioneer reported Sunday first-quarter deliveries that came in at 422,875 units, ahead of the company-compiled consensus estimate of 421,500 units.

The tally marked a quarterly record and represented a 36.39% year-over-year jump and a 4.34% quarter-over-quarter rise.

Street concerns could be because the volume growth was not strong enough to hit a 2-million annual pace for the year. Also, analysts have begun to raise the specter of margin impact from the deep price cuts. Wedbush’s Daniel Ives said an automotive margin north of 20% could be the key threshold over the coming quarters.

See Also: Everything You Need To Know About Tesla Stock

More clarity on this could be got when the Elon Musk-led company reports its first-quarter results on April 19.

Some of the weakness may have to do with market-wide concerns amid oil’s rise and the spike in bond yields.

After a 66% drop in 2022, Tesla shares have seen a turnaround this year. For the year-to-date, the stock is up about 68.4%.

If the stock breaks the $200 psychological support to the downside, it could drop toward the next support area around $196. Further down, it has support around its 200-day simple moving average of $176.17. On the upside, the $228 level could serve as resistance.

Price Action: In premarket trading on Monday, Tesla fell $2.31 at $202.65, according to Benzinga Pro data.

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