Tesla Shares Are Trading Lower After The Company Cut Some Model Y Prices In China
Tesla lowered the starting prices for both the Model Y Long Range and Performance variants by RMB 14,000 (approximately $1,930), as stated in a Weibo post. The base model of the Model Y standard version retained its price. Additionally, the company introduced a time-limited insurance subsidy of RMB 8,000 for inventory Model 3 rear-wheel drive vehicles, effective from Monday.
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00:00 All right, let's keep going.
00:00 Let's move to Tesla, of course,
00:02 as they're doing price cuts in China.
00:05 Tesla lowered its Model Y long range performance versions
00:09 in China, of course.
00:10 Tesla's China's made EVs fell 31% in July
00:14 due to ongoing EV price competition.
00:18 And just last month, CEO Elon Musk had warned
00:21 that further cuts could be expected
00:24 if market conditions become unstable.
00:27 So like I've talked about it in the automotive industry,
00:30 it seems like it's become the battle of margins
00:33 and Tesla slowly but surely losing margins.
00:37 - We gave a technical on these Friday morning.
00:39 Tesla and Netflix, we did them together.
00:41 And I said, I hate them both from a chart perspective.
00:43 And I'm at that same spot here.
00:45 Tesla's now down $8 from where we talked about it on Friday.
00:48 And Netflix is down $6
00:50 from where we talked about it on Friday.
00:51 I don't like these charts.
00:53 I think they're both got head and shoulders happening here,
00:55 especially the Netflix.
00:57 And I think that there could be a date with 200
01:00 for Tesla again here eventually.
01:01 So I do like Tesla, the company, I do like Elon Musk.
01:05 You guys know if you've list for a while
01:07 that I'm a huge fan of Elon Musk,
01:09 but we have just had a ridiculous run.
01:11 I think we're due for a pullback
01:12 on some of these really highly valued names
01:15 and this nosebleed PEs on both of these stocks now.
01:19 Netflix was reasonable when it was 180,
01:21 it is not reasonable when it's 422.
01:23 And if you're gonna start seeing,
01:27 any type of a slowdown,
01:28 people aren't gonna be running to buy $100,000 cars
01:32 or 40 or 50 or $60,000 cars
01:34 if they're buying the cheaper models.
01:36 And Netflix, I just think,
01:38 yeah, subscribers might go up
01:39 because of some of the cost cutting
01:41 and some of those password sharing,
01:42 sorry, the password sharing stuff,
01:44 but the charts don't look good.
01:46 And sometimes price don't lie.
01:48 Something like these both look heavy to me.
01:51 Tesla, we've been talking about this one.
01:53 After the earnings popped,
01:55 there's just been pressure on the stock, right?
01:57 They sold off and it's just,
01:59 the sellers have been coming down.
02:01 280, we couldn't wiggle out.
02:03 270, we couldn't wiggle out.
02:04 260, they couldn't wiggle out.
02:07 240 had been the support
02:10 and you closed just above that on Friday.
02:12 Longer you hang out near support,
02:15 the more likely it's gonna take it out.
02:17 And now it's in a total danger zone here.
02:20 Yeah, you could say there's a gap fill at 235.23,
02:24 but charts like this, where it goes up,
02:26 what it took one week, two weeks, three weeks
02:29 to make all those gains.
02:30 We know in this market,
02:32 it would just look at something like a super microcomputer.
02:36 Days and weeks of gains could be wiped out in just,
02:41 months of gains could just be wiped out in one day.
02:45 Yeah.
02:46 Also, I think-
02:47 This is the market right now.
02:48 Yeah, also, I've been talking to people
02:50 that have Teslas and stuff.
02:53 And yeah, a buddy of mine that has one here,
02:56 he had to go to Cleveland to get it.
02:57 He just hope nothing breaks on it
02:59 because he has to go to Cleveland to get it fixed.
03:03 So I don't know what their reliability is here,
03:06 but there's a lot of issues,
03:08 cutting prices over inventory.
03:11 It's just in a danger zone here.
03:13 So I'd be, for today,
03:16 you can look at a gap fill at 235.23.
03:19 If you've been waiting on that, keep an eye on that.
03:21 But as far as the dailies go,
03:23 the only area with two lows in the same area is 223
03:28 for Teslas.