Automaker Tesla (NAS100:TSLA) has seen its shares move higher despite weak European markets for a seventh month.
TSLA – Daily Chart
The price of TSLA has been moving higher to the $346.77 level. That brings the price above a cluster of resistance, with the $365 level now the obstacle to a new rally.
Europeans remain angry at Elon Musk and are not buying his cars, months after the billionaire predicted a “major rebound” in Tesla sales, according to recent data.
Tesla sales plunged by 40% in July in the 27 European Union countries compared with the same period last year, even as sales of electric vehicles overall soared. Meanwhile, sales of Chinese rival BYD continued to grow, capturing a 1.1% market share of all car sales in the month, compared to Tesla’s 0.7%.
Musk angered much of his potential sales base in Europe by getting involved in politics there, embracing right-wing candidates. He also called the British prime minister an “evil tyrant” who belongs in prison and told Germans, “things will get very, very much worse” in their country if they didn’t vote for the AfD. Musk’s moves created a reaction similar to his efforts in the U.S., where his cars are stigmatised due to political concerns.
There are other issues affecting sales, as the company is still awaiting European regulatory approval to enable Tesla owners to use its most advanced driver-assistance features. Musk had predicted the approval of its so-called Full-Self Driving software by March of this year.
Another problem was the company’s decision to temporarily close its factories earlier this year to allow for the retooling of the best-selling Model Y vehicle. Tesla is now hoping that the introduction of cheaper Teslas in the last three months of this year will boost flagging sales. In the background, the company is also working on its robotics and AI goals.
