San Francisco, California – Tesla shares took a tumble on Monday as investors eagerly awaited the electric vehicle maker’s highly anticipated quarterly results, set to be released after Tuesday’s closing bell. The stock has been on a downtrend, dropping 44% since the beginning of the year, amid concerns about CEO Elon Musk’s involvement with the Trump administration impacting the company’s brand and sales. On Monday, Tesla shares fell nearly 6% to $227.50.
Analysts have expressed concerns about Tesla’s weaker-than-expected first-quarter delivery numbers released earlier this month. Market watchers will be paying close attention to any updates from Musk regarding how the Trump administration’s tariffs may affect the company going forward. The ongoing trade war between the United States and China is also a key point of interest for investors.
Technical analysis of Tesla’s chart reveals a bearish pattern known as a descending triangle, indicating a continuation of the recent downtrend. The 50-day moving average crossing below the 200-day moving average last week formed a death cross, further signaling potential lower prices for the stock. The relative strength index points to lackluster price momentum, with recent gains barely pushing the indicator above the 50 threshold.
Investors should keep an eye on key support levels on Tesla’s chart, particularly around $170 and $139, where buying interest may emerge during further selling. Important overhead areas to watch for potential recovery efforts include the $289 level, which could face significant selling pressure. A move up to $360 is also a possibility, with investors who bought the stock at lower levels looking for exit points in that range.
It is important to note that the comments, opinions, and analyses expressed in this article are for informational purposes only. As of the date of writing, the author does not own any Tesla securities. Tesla investors will be watching closely as the company navigates through a challenging market environment and uncertain global economic conditions.
