Tesla, Inc. (NASDAQ: TSLA) shares are trading lower Thursday amid overall market weakness. It was also reported that the company’s August European Union new car registrations fell.
What To Know: According to Reuters, Tesla's new car registrations in the European Union fell 36.6% in August, cutting its market share to 1.2% from 2% a year earlier. Rival BYD extended its lead, outselling Tesla in the EU for the second consecutive month as its registrations surged 201.3% year-over-year to 1.3% of the market.
The auto industry in Europe is battling headwinds due to tariffs and stiffer competition from China. Automakers have also faced challenges in meeting regulations required for the adoption of electric vehicles.
The broader EU auto market expanded 4.7% last month to 800,000 cars, boosted by plug-in hybrid and battery-electric sales, which made up more than 62% of total registrations. Stellantis returned to growth with a 2.2% increase, while Volkswagen and Renault rose 4.8% and 7.8%, respectively.
TSLA Analysis: Tesla stock is up about 24% over the past month. The price action in Tesla shares indicates a potential reversal as the stock approaches key support levels around $423.00, which aligns with recent lows. Volume is substantial on Thursday, suggesting strong selling pressure and confirming the bearish sentiment.
Support levels are firmly established at $423.00 and $415.00, while resistance is found at $435.00 and $440.00. These levels will be crucial for determining the next move.
The RSI is calculated at 36.75, indicating the stock is nearing oversold conditions. This could signal a potential bounce if it holds above support. On the other hand, MACD shows a bearish crossover, with the MACD line at -2.15 and the signal line at -1.80, reinforcing the downward momentum.
How To Buy TSLA Stock
By now you're likely curious about how to participate in the market for Tesla – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
TSLA Price Action: At the time of writing on Thursday, Tesla shares were down 3.11% at $429.03, according to data from Benzinga Pro.
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