Tesla at $380 Support Before Earnings as Xpeng Teases Model Y Rival

Tesla shares fell to $380 on Friday, more than 23% below this year’s high near $498, as investors awaited the automaker’s quarterly earnings due Wednesday. The decline followed Chinese rival Xpeng’s launch of a lower-priced SUV and a bullish comment from an Xpeng co-founder.

On technical charts, Tesla recently moved below its 50-day exponential moving average and the Percentage Price Oscillator fell below zero. The stock is trading just above an ascending trendline that dates to April last year. Analysts and chart watchers expect the price could test $350 if earnings disappoint; a move above $400 would indicate further gains.

Xpeng introduced the L03, an electric SUV priced from about €35,600, launched in China and Europe. That starting price is below the Model Y base in Europe, which begins at €39,990. Xpeng reported deliveries of 40,126 vehicles in June and 103,295 vehicles in the second quarter, compared with 34,611 in June last year and about 103,181 in Q2 a year earlier. The company is valued at more than $12 billion.

Xpeng’s co-founder wrote, ‘I think we’re not far from beating Model Y. I really believe in that.’

Tesla reported production of about 450,000 vehicles and deliveries of roughly 480,000 in the most recent quarter, up from production of about 408,000 and deliveries of 358,000 in the prior reporting period. Analysts’ average estimate for Tesla’s second-quarter revenue is $26.36 billion, a 17.2% year-over-year increase; full-year revenue estimates center near $104.5 billion, about 10% higher than last year.

Chinese electric-vehicle makers including BYD, SAIC, Nio and Li Auto have expanded model lineups in recent years and taken market share. Tesla is also facing higher operating costs, including expenses tied to data centers and other infrastructure. Higher gasoline prices in the second quarter, linked to tensions in the Middle East, have been cited as a factor that can lift demand for electric vehicles.

Investors will watch Wednesday’s earnings for details on profit margins, production guidance and management plans to address competition and costs. Market participants expect the report to be an immediate catalyst for the stock.