I don't think there's a causation thing going on here, the knowledge that Cali was going to cut the ZEV credits is pretty widely known. More likely TSLA is getting a second flush as a "momentum" issue, something we'll know either today or tomorrow morning. The last time the stock traded lower than the March 27 $203.00 intermediate term bottom was the day of the last earnings report, Feb. 19th when the stock closed at $193.64 and gap-opened at $215.01. This gives us a couple support targests, $203 and then $193.
If the stock blows past the lower it could drop as far as the hundred-buck range.
Here's the 3-month action via Yahoo Finance:
And here's Bloomberg:
Tesla to Get Fewer Eco Credits as California Tweaks Rules
Tesla Motors Inc., which had its first profitable quarter last year aided by sales of California environmental credits, is to receive fewer for each Model S sold as the state modifies its zero-emission vehicle program.
The Palo Alto, California-based carmaker, which sold ZEV credits worth $129.8 million last year to other automakers, will initially qualify for only four credits per car sold in California and states that follow its rules. That’s down from seven per Model S through 2013, according to California’s Air Resources Board, which posted the changes April 3.
The credit rule change, deferred from October, comes after the board emphasized last year a need to ensure the state awarded credits based only on how advanced vehicles are actually used, rather than theoretical capabilities. Some automakers had said that Tesla was getting more credits than it deserved, since it failed to meet the rapid-refueling requirement, the board said last year.
Maximum credits per emission-free vehicle sold in California is rising to nine from seven previously, and go only to vehicles with long driving ranges and that can be refueled within 15 minutes or less, the agency said. Hydrogen fuel-cell autos with a range of about 300 miles (483 kilometers) fulfill that requirement, while even Tesla’s Model S with its largest battery pack wouldn’t immediately qualify....MORE
