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Tesla Inc. News Background Continues to Put Pressure on Stocks

11/22/2022 2:12 PM

The stocks of the world's leading manufacturer of electric cars Tesla Inc. continue to fall on the background of fundamental news and are currently trading at around 167.00.

As for global long-term factors, the electric car market is in a difficult situation, and leading experts predict a crisis in graphite supplies. This mineral is one of the main components, and the current difficulties are caused by the fact that 65.0% of the world's volume is mined and 85.0% is processed in China. So, the first problem is related to the zero tolerance policy for coronavirus, which is why the centers of production and processing of material are often closed. The second lies in the "opacity" of pricing in the market, which almost completely depends on producers, since a small part of the mineral is traded on the stock exchange. Against the background of the "confrontation" between the two countries, the USA fears that China may start using the price as a pressure tool, creating problems in the electric car market.

The problem of defects in the company's cars has again become a local negative factor. Earlier, Tesla Inc. announced the recall of 321.0K Model 3 and Model Y automobiles due to problems with the taillights that spontaneously start flashing, causing malfunctions in the fault diagnosis system. It is worth recalling that this year a similar situation is repeated for the 19th time due to imperfections of structures. 

On the four-hour chart, the quotes continue to trade within the descending channel, reaching the level of the initial trend of 61.8% Fibonacci extension at 164.70.

Technical indicators remain in a stable state of a sell signal: fast EMAs on the alligator indicator are moving away from the signal line, and the histogram of the AO oscillator is trading deep in the sales zone.    

Support levels: 164.70, 142.50. | Resistance levels: 176.80, 200.00.

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