The stocks of the world's leading electric car manufacturer Tesla Inc. continue the global correction and are currently trading at around 113.00.
According to the latest data, sales of Chinese-made cars amounted to 55.796K in December, which is the lowest figure in the last five months. The value decreased by 44.0% compared to November statistics and by 21.0% compared to 2021. Also, the automaker is increasingly lagging behind its key competitor BYD Company Ltd., which delivered 234,598K cars to the market last month. Moreover, in December, the company lost even to the joint venture of General Motors and SAIC-GM-Wuling Automobile Co., which increased sales by 53.0% compared to Tesla Inc.
The second large-scale reduction in prices for cars sold in China in the last three months could not support the shares. Thus, the cost of the Model 3 was reduced to 229,900 yuan from 265,900 yuan earlier. In general, the correction will be from 6.0% to 13.5%, and the overall price reduction since September will be from 13.0% to 24.0%, which, according to management, should stimulate sales.
On the four-hour chart, the quotes left the limits of the global descending corridor, breaking the resistance line at 110.00.
Technical indicators have already issued a new buy signal, which is not in a hurry to strengthen yet: fast EMAs on the alligator indicator are moving away from the signal line, and the histogram of the AO oscillator forms new ascending bars.
Support levels: 109.00, 102.00. | Resistance levels: 118.00, 137.00.