Yesterday we talked about oil being an unlikely victim of coronavirus. Apparently, Chinese oil demand is a very important topic and with it being unclear, we can’t really predict that oil prices would look like. And today there is another unlikely victim of the disease. The one that we expected to see the least in here.

As we all know, a lot of famous companies outsource their production to China because of the lower labor cost in the country. And surely, Tesla were no different in this regard. But it seems that all of these companies are punished now as with the spread of coronavirus, they have to take measures to somehow protect their production and their workers from the disease. The only way to do that is to shut down the production in China until the situation settles. And here is when the troubles come in.

Tesla reported that they have seized Chinese production and as a result delivery of some of their models is going to be postponed by unspecified period of time. And this is where troubles began for TSLA as the stock tumbled 17 percent over the last trading session – something that we didn’t anticipate and that we really did not want to happen.

So, if today TSLA are going to maintain their direction, it is possible that all the gains are going to be erased and the producer will have to start the climb all over again.

What will happen? That we will be able to tell with our trading signals.