Tesla's (NASDAQ: TSLA) factory in Germany was initially producing 5,000 units per week in March. However, there has been a slight decrease in production, with 4,350 units weekly in July and August, and indications that there may be further reductions in the months to come.
At first glance, this adjustment may raise some concerns about potential operational difficulties or a shift in demand. A closer look at Tesla's year-to-date stock performance reveals a more nuanced situation.
Tesla's stock has shown impressive growth, with a yearly gain of 101%. However, this growth has not been without its ups and downs.
In the first two months of the year, the stock saw a significant rally, with its price soaring by 83%. However, there was a subsequent decline of 29% from February to April.
However, Tesla is well acquainted with the art of comebacks. In the span of April to July, the stock surged by an impressive 96%. The stock declined again, but this time by 20%.
The recent drop in the stock price came to a key support level of $217, which was established from a high in February 2023.
Currently, the stock has rebounded from this level, suggesting its resilience. However, the stability of this support level is still being closely watched.
If the stock price were to test this support level again and not hold its position, there is a possibility of it dropping further to the next significant support level at $200, which is a psychological zone.
This bears significance as it aligns with the daily 200 simple moving average, reinforcing its role as a sturdy support level.
Falling to this level would result in the stock price being approximately half of its peak value from November 2021.
This illustrates the unpredictable nature of stocks, showcasing how they can rapidly set records one moment and then face significant challenges the next.
After the closing bell on Wednesday, August 23, the stock closed at $236.86, trading up by 1.57%.