Tesla shares are again put under pressure by news background

Tesla shares, as stated in the previous forecast, continued to fall with renewal of 2025 lows. Last week, the bulls tried to trigger a rebound, but their strength ran out at the level of 360. The downward movement has resumed, and now the price is heading towards the 310 level for the first time since November. Both technical picture and news background support sellers of Tesla shares.

According to the European Automobile Manufacturers Association, Tesla car sales plunged 45% across the continent in January. The company has recorded a minimum of 9945 vehicles sold since January 2023. Total sales of electric vehicles in the EU and the UK, meanwhile, increased by 37%. Hence, Tesla's offerings are losing competition to other manufacturers. For example, in the UK, Elon Musk's company lost for the first time to China's BYD in terms of sales.

According to Bloomberg polls, Europeans react negatively to Musk's statements and are dissatisfied with his interference in the geopolitical situation on the continent. In addition, the transition to the new Model Y contributed to the decline in sales. Modernization of equipment for production of this version will lead to several weeks of forced downtime at 4 factories around the world.

Today, Tesla announced the launch of sales of the updated autopilot system in China. However, Chinese residents appeared unfazed after testing the new product. According to Reuters, the Chinese autopilot version is equipped with much less data about local roads and traffic rules than similar software in the United States. Chinese electric car manufacturers offer similar features for a much lower price or for free.

The Stochastic indicator lines on the daily chart of Tesla shares crossed and moved downward, indicating the advantage of the bears in trading. Their next target could be the 310 level.

Consider the following trading strategy:

Sell TSLA at the current price. Take profit – 310. Stop loss – 360.