TSLA cuts executive component, SEC subpoena company
- Tesla stock is flat in Tuesday’s premarket after some flimsy headlines.
- TSLA closed Monday at $907.34, down just under 2%.
- CNBC reports that Tesla cut steering components from some cars due to chip shortages.
Semiconductor chip issues are back in the spotlight this morning as CNBC reports that Tesla (TSLA) cut steering components from some cars in order to deal with chip shortages. We will have to wait and see if this affects the stock price. So far in Tuesday’s premarket, the effect appears limited with Tesla trading at $906.53, virtually unchanged from yesterday.
Tesla Stock News
CNBC reported last night that Tesla has decided to remove one of the two electronic control units found in some Chinese-made Model 3 and Model Y cars. Tesla did not tell customers, and CNBC says employees debated whether to tell customers but decided it was not necessary to do so. The change means that Tesla will not be able to turn all existing cars into driverless cars, according to the report. Tesla workers told CNBC that if Tesla does a more complex FSD update, affected cars will need to get a modernized steering rack.
We also note reports in the Financial Times and Wall Street Journal on Monday that the Securities & Exchange Commission has subpoenaed Tesla regarding compliance with a legal settlement reached regarding the pre-clearance of Elon Musk’s tweets. . This ties into a 2018 settlement when Elon Musk tweeted that he had approved funding to take Tesla private. We haven’t seen the whole story.
Tesla Stock Forecast
The 200-day moving average remains the big level below at $820. The $843 support is also close, but the 200-day level is the most important level. The downtrend remains intact with $792 and $1,208 the last major highs and lows of the downtrend.
Recent moves have been choppy and directionless, so it remains to be seen if this recent news provides additional catalyst. Breaking above $945 will give the bulls some short-term hope. The longer Tesla stays below $945, the more likely it is to fail and retest the 200-day moving average.
Tesla Chart (TSLA), Daily
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