Tesla stock makes U-turn into positive territory despite price cuts in China
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Shares of Tesla (NASDAQ:TSLA) staged a dramatic comeback on Friday, pushing into the green after dropping over 7% on the open.
Shares of the Austin-based automaker touched a low of $101.81 shortly after the market opened, threatening a retreat into double-digits and extending an over 70% decline for the stock from late 2021 highs. The steep slide on the open came as a signal of further price cuts in China prompted further demand concerns.
However, by the mid-afternoon the stock had rebounded to a 1.18% gain.
Trading volume on Friday has been somewhat elevated, with over 170M shares changing hands by 2 PM against a daily average volume of 109.1M. Bloomberg technical analysis also noted that the stock was headed for a potential support zone in the range of $92 to $103, predicting the bounce seen after the inauspicious open.
EV-focused outlet Electrek offered another explanation, pointing to the social media attention to the throngs of Chinese citizens flocking to stores. Multiple posts on western social media suggested these crowds were eager to take advantage of the new discounts. To the contrary, the crowds were apparently protesting the price cuts due to the perception that current owners overpaid.
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