There are indications that Tesla is being courted by officials in Teeside and Hartlepool for a possible shift in the location of the planned EV and battery gigafactory. Originally slated to be constructed in Grünheide, Germany, the project is now facing an uphill battle against environmentalists and a court order asking Tesla to stop construction to protect endangered lizard and snake species in the location.
As a result of the development, construction is now stalled and officials in Teeside see this as an opportunity to get Tesla decision makers to look towards the alternate location originally suggested.
Traders who are bullish on Tesla’s share price appear to be having a rethink as well. Today’s lower open sees the potential to form a dark cloud cover, if we have a slightly lower close than the present level.
For a stock that has had such a rapid growth in the last few months, is this a sign that the trend has stalled?
The price action on the daily chart shows that Tesla share price has formed two progressively lower tops, which could be a sign that the upside move has stalled. 601.39 is the immediate target to the downside, and it needs to give way for 564.57 to come into view. A breakdown of 564.57 brings 541.18 into the picture, as well as 502.28 as the pattern would by then have become a confirmed double top, seeking a price projection point.
On the flip side, restoration of the uptrend on Tesla requires a break above 654.32 (9 December high), which brings in 697.55 into focus. This move should ideally come from any of the support levels mentioned above in a manner that preserves the higher lows required to complement the higher high.
