The electric car maker’s TSLA -0.90% stock fell Friday after news that Tesla’s chief in China had resigned after about a year on the job. A lot of Tesla’s success going forward hinges on conquering China, one of the world’s largest car markets.
Veronica Wu had replaced someone who also didn’t stay long, and her resignation follows the resignation of Tesla China’s chief of communications.
Tesla shares have fallen, in part, because of the perception that lower oil futures and retail gasoline prices will cut down on demand for alternative energy, in broad terms, and for electric cars.
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Some have reasoned that customers who are willing to pay more than $75,000 for the basic version of the Model S sedan is not exactly a price-sensitive customer.
But the bearish signals for Tesla have kept on coming, with the latest being a “head-and-shoulders” pattern on the stock’s chart that could signal a further 25% drop for the stock.
Tesla last month reported a wider third-quarter loss and cut its delivery estimates for this year, citing delays at its factory after an overhaul to accommodate the coming Model X, an SUV expected to go on sale in the third-quarter of 2015—a quarter later than previously predicted.
The car maker reiterated its goal to make up to 100,000 vehicles by the end of next year.
In the two weeks ending Nov. 15, 2013, Tesla shares fell 16%. The stock is down 28% from a record close of $286.04 on Sept. 4.
They have gained 38% so far this year. That compares with gains of 8.3% for the S&P 500 Index.
