Tesla drops below $700 with eyes on valuation and Shanghai
Xiaolu Chu/Getty Images News

Tesla (NASDAQ:TSLA
-3.2%) slipped below the $700 level for the first time since last August amid the relentless selling pressure in the tech and electric vehicle sectors. Shares broker off their session low, but are still more than 42% lower than their all-time high.
Beyond the valuation reset in the market, some traders may be concerned about indications that Tesla (TSLA) is off to a slow start in China in Q2. On the last earnings call, Elon Musk told analysts that the Gigafactory Shanghai was coming back with a vengeance, but recent supply chain and COVID hiccups have continued to get in the way of a full ramp.
Tesla delivered just 1,512 Model 3s and Ys in April, which was down 87% from a year ago and 98% below the tally in March, per data from the China Passenger Car Association. The May number could be crucial in recharging the TSLA growth story.
Is Tesla a buy at $700? The growth and profitability marks for TSLA still rank near the top of the auto sector, but arguments could be made either way on the valuation side.