What's the Story of Tesla's Falling Stock? - Kakiforex.com - Financial Market Media No. 1 in the World What's the Story of Tesla's Falling Stock? What's the Story of Tesla's Falling Stock?

March 19, 2021

What's the Story of Tesla's Falling Stock?

 Tesla shares on Friday opened lower after the latest report was released. The report stated that officials in China would ban Tesla vehicles due to security issues.

Bloomberg reported that the ban will take effect this week because of concerns over potentially sensitive data coming from vehicle cameras, where it will be collected and stored on Tesla servers.

After the ban was issued, follow -up reports reported that China -based rival company Geely was making preparations to launch a range of EV vehicles that could challenge rival companies.

Tesla reportedly sold 18,318 Chinese -made cars in February. Tesla’s sales in China are about a fifth of the total in 2020.

Tesla shares were 0.6% lower when the stock market opened on Friday. So far Tesla shares have fallen more than 27.8% since it hit a daily high of $ 900.40 per share on Jan. 25th.

Analysts argue that Tesla shares have so far been sensitive to rising interest rates and the outlook for Tesla shares is also dependent on semiconductor supply.

The supply shortage is likely to bring big problems to Tesla, analysts said. However, if the supply shortage can be overcome in the midst of this Covid-19 contagion then it is likely to bring a positive flow to Tesla.