Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Will the Tesla share price keep driving investors around the bend?

The electric carmaker continues to see its share price steadily decline, with the company performance likely to suffer as it plans to raise prices in China ahead of schedule.

Last week saw Tesla’s share price slide more than 6.5%, with the electric carmaker’s stock falling by more than 30% this year from $310.12 a share at the start of January to closing at $214.08 on Tuesday.

So consistent has Tesla’s performance being this year, that short-sellers of the stock are up by as much as $3 billion in 2019 – making it the most successful short position of the last nine months – according to New York-based financial analytics firm S3 Partners.

Practise trading Tesla and other US carmakers stocks with an IG demo account

Chinese tariffs for Tesla cars pricier

Short-sellers can expect to make further gains after Tesla plans to raise car prices in China this week, according to a report by Bloomberg.

The decision to raise vehicle prices in China is in reaction to the ongoing trade war between the world’s two largest economies which is applying weakening the dollar and leading to hikes in import tariffs on both countries’ exports.

The electric carmaker is being hurt more by the ongoing US-China trade war than its rivals due to it lacking local production, with import tariff hikes significantly increasing the cost of doing business.

Last week, officials in Beijing said they were prepared to raise tariffs on US made cars by as much as 50% in retaliation for President Donald Trump’s planned hike on Chinese exports.

Tesla: Technical Analysis

Tesla shares have been on the slide throughout August, as the gains seen throughout much of June and July are gradually eroded. However, that prior rally took us throughout both trendline and $259.37 resistance, signalling a strong possibility that we have bottomed out.

Looking at price action since that rally, we are trading within a bullish falling wedge pattern, pointing towards a potential impending rally. With price currently respecting the 61.8% Fibonacci retracement level, there is a possibility that the bulls could start to come into play from here.

Otherwise, look out for $198.62 as the next key support level of note. Alternately, a break below $177.11 would bring about a more bearish picture once again.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.