Tesla Share Price Drops After Local EV Sales in China Drop 69%

Summary:

Tesla share price drops marginally after local sales of its EVs in China drop 69% month-on-month, but the drop is limited.

Tesla share price fell this Tuesday after the company reported lower local EV sales monthly. Sales of EVs produced locally in China fell 69%, with Tesla selling only 8,621 cars in July following June’s strong number of 28.138.

Growing competition from brands such as BYD, Nio and GM/SAIC Motors and regulatory scrutiny are some headwinds the stock is facing. The Tesla share price is down 0.96% as of writing.

Technical Outlook for Tesla Share Price

Tuesday’s drop seems limited, as bulls initiated a slight bounce above the 693.75 support. Bulls need to take the price above 725.47 for the 743.70 barrier to come into the picture. A further advance targets 779.23, with 820.06 marking new multi-month highs for 2021.

On the flip side, a decline below 693.75 brings 668.60 into the picture, with 628.76 and 600.84 forming additional targets to the south.