Tesla is likely to cut China-based Model 3 prices by 8% as it looks to remove cobalt-based batteries
Tesla sold more than 11,000 cars, mostly Model 3 sedans, in August in China
Shares of Tesla fell almost 14% last month on the back of a sharp correction in the stock market
Shares of Tesla (TSLA) fell nearly 14% in September as the stock market corrected after a faster-than-anticipated recovery from the pandemic-fueled losses. The buyers are now looking for an attractive entry point to push the stock above the $500 mark again.
Fundamental analysis: Tesla cuts China-based Model 3 prices
Following its decision to start producing some of its Model 3 sedans with cheaper cobalt-free batteries, Tesla is likely to cut China-based Model 3 prices by 8%, according to Bloomberg. The new price for this type of car is 249,900 yuan ($36,805), instead of 271,550 yuan, or ($39,900). The new price list includes government subsidies for electric vehicles.
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Model 3 sedans are currently being produced using nickel-manganese-cobalt batteries. Instead, the producer of electric vehicles is looking to start using lithium-iron-phosphate (LFP) batteries, which consist of no cobalt.
This news doesn’t come as a major surprise given that Tesla’s CEO Elon Musk announced plans to remove cobalt from its batteries in the future. This metal is one of the most expensive metals used in the manufacturing of electric vehicles batteries, hence the decrease in Tesla car prices may become new normality.
Tesla sold more than 11,000 cars, mostly Model 3 sedans, in August in China.
Technical analysis: A bullish triangle
Tesla stock price fell almost 14% last month on the back of a sharp correction in the stock market. However, shares opened the new month higher as Tesla stock price is up 2% in premarket trading.
Bullish triangle – Tesla daily chart (TradingView)
A correction in the price led to the creation of a bullish triangle. This format is seen as a continuation chart pattern that leads towards an extension of the uptrend, following a brief period of consolidation.
A break of the triangle may be happening now, while a close above the $440 mark will definitely confirm it. In this case, the measured target of the triangle points to $610, signalling an upside of over 40% compared to the current market price. Hence, this chart pattern offers an attractive trading setup to invest in TSLA shares.
Tesla will start making some of its China-based Model 3s with lithium-iron-phosphate (LFP), instead of more expensive cobalt. Tesla share price is on the brink of a break this week, which could eventually push the price action to $610 in October.
China posted a GDP growth of 4.9 in the third quarter, lower than 5.2% expected from market’s analysts Retail sales climbed by 3.3% in September, marking a 0.9% surge in Q3 The SHCOMP price closed 0.71% lower yesterday after Chinese GDP missed the market’s estimates Shanghai Composite Index (SHCOMP) price fell yesterday after the latest GDP data shows that the country’s economy grew at a lower-than-expected rate. Fundamental analysis: ‘Complicated international environment’ A new data from the National Bureau of Statistics of China showed that the country’s economy has grown in the third quarter, continuing its recovery from the coronavirus. Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today. China posted a GDP growth of 4.9%, compared to the same period last year. This means that during the first three quarters of the year, China’s economy expanded by 0.7% compared to the same period a year ago. The growth in the third quarter was lower than expected as Chinese economists were projecting an expansion of 5.2%. “Generally speaking, the overall national economy continued the steady recovery and significant results have been delivered in coordinating epidemic prevention and development,” National Bureau of
Reading International, Inc. (NASDAQ: RDI) ("Reading”) announced today that it expects to release its financial results for its second quarter ended June 30, 2020 on Monday, August 10, 2020 before the opening of the U.S. stock markets.
Reading plans to post its pre-recorded conference call and audio webcast on its corporate website on Wednesday, August 12, 2020, that will feature prepared remarks from Ellen Cotter, President & Chief Executive Officer, Gilbert Avanes, Executive Vice President, Chief Financial Officer and Treasurer and Andrzej Matyczynski, Executive Vice President - Global Operations.
A pre-recorded question and answer session will follow our formal remarks. Questions and topics for consideration should be submitted to InvestorRelations@readingrdi.com by Tuesday, August 11, 2020 by 5:00 p.m. EDT. The audio webcast can be accessed by visiting https://investor.readingrdi.com/presentations.
About Reading International, Inc.
Reading International Inc. (NASDAQ: RDI) an internationally diversified cinema and real estate company is a leading entertainment and real estate company, engaging in the development, ownership and operation of multiplex cinemas and retail and commercial real estate in the United States, Australia, and New Zealand. The family of Reading brands includes cinema brands: Reading Cinemas, Angelika Film Centers, Consolidated Theatres, City Cinemas, and State Cinema; live theatres operated by Liberty Theatres in the United States; and signature property developments, including Newmarket Village, Auburn Redyard, Cannon Park, and The Belmont Common in Australia, Courtenay Central in New Zealand, and 44 Union Square in New York City.
Additional information about Reading can be obtained from the Company's website: https://www.readingrdi.com.
This press release contains certain statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are qualified by the inherent risks and uncertainties surrounding future expectations generally and also may materially differ from actual future experience involving any one or more of such statements. Such risks and uncertainties include the impact of the currently expanding outbreak of the COVID-19, or coronavirus; the disruptions or reductions in the utilization of entertainment, hospitality and travel venues, as well as in our operations, due to pandemics, epidemics, widespread health emergencies, or outbreaks of infectious diseases, such as the coronavirus; the potential impacts of cessation of our operations on covenants under our credit facilities and other agreements to which we are subject, and these and other risks and uncertainties set forth from time to time in Reading's filings with the Securities and Exchange Commission. The inclusion of a forward-looking statement in this press release should not be regarded as a representation by Reading that its objectives will be achieved. Reading undertakes no obligation to publicly update forward-looking statements, whether as a result of new information, future events, or otherwise.
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