Tesla Stock Drops 3% Amid Rising Competition and Cybertruck Recall

Tesla (NASDAQ: TSLA) unveiled its third-quarter vehicle deliveries and tesla stock earnings, which stood at 462,890, a bit lower than the projection of 463,897 Wall Street had. The miss didn’t exert much pressure on the stock. Tesla saw a 6.4% week-over-week pickup in deliveries. This represented a 20,395 increase from the third quarter of the previous year. Model 3 and Model Y vehicles accounted for the majority, with 439,975 deliveries. The announcement caused Tesla’s stock to decline by 3%. This drop followed a 30-day period where the stock had risen 20%. The previous rise was due to two factors. First, there was growing optimism about the company’s robotaxi event. Second, Tesla’s sales in China had performed well.

Nevertheless, the frustration signifies the worries of the investors who believe that the growth of the company has slowed down. Tesla is also facing a lot of tough competition from Chinese companies in the electric vehicle sector, such as BYD and Xpeng. Also, due to the recent cutting of the prices by Tesla, its profitability has been affected, which is another reason for concern about the direction of the company.

Robotaxi Event and Cybertruck Recall

Tesla’s robotaxi event on October 10 is expected to be one of the most significant moments for the company in the near future. Analysts look at it as critical to Tesla’s future, especially with the ascending application of artificial intelligence. Also, Tesla will announce its third-quarter earnings on October 23, which will give more information about its financial stability in the face of competition.

Adding to the challenges, Tesla made public the recall of over 27,000 Cybertrucks in the US because of a rear-view camera problem that leads to traffic safety. This is correlated with past recalls with scarring windshield wipers and lost exterior trim. Nevertheless, Tesla has guaranteed a software solution that will address the newest problem.

Tesla Stock Chart Analysis 

TSLA/USD Chart

Looking at Tesla’s (TSLA) stock chart and recent Tesla stock earnings, we will see a stock trading activity that had a stable session, although it was closed slightly lower by 0.15% on the given trading day. We opened at $249.38, with the stock moving within a tight range, reaching a high of $249.48 and a low of $247.90 before closing at $248.99. 

Investors traded 359,246 shares today, reflecting moderate turnover and indicating an unpressured market. This often implies the market is not moving in any of the directions, as investors are holding out for something more decisive before deciding on bigger moves.

The chart first shows a dramatic descent, then displays a quick recovery around October 2. Hence, that $250 level seems to be the target of a resistance breakout. In addition, Tesla has failed to hold any momentum above it.

We’re trading near the pre-market price of $245.79. The market seems to await a catalyst. This could be a statement, earnings report, or shift in overall market sentiment. Such a catalyst might end the slow price action cycle. For now, we’ll keep watching Tesla’s price movements closely. We’ll also monitor for any increase in trading volume.

Given these factors, making a tesla stock price prediction remains challenging. Analysts and investors are closely watching for signs that could indicate future price movements.

The performance of Tesla will remain at the forefront as the company gets ready for its key robotaxi event and also the third-quarter earnings report, with investors wondering: will tesla stock go up?

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