Tesla’s stock suffered a 15% decline on Monday, hitting its lowest levels since before Election Day. Tesla closed at $229.70 and is trading around $222.15 in pre-market hours. This marks Tesla’s worst single-day performance since 2020, significantly underperforming the S&P 500’s 2.7% decline.
Political Fallout and Public Protests Add to Tesla’s Woes
Tesla has become a target of protests as backlash mounts over Musk’s role in government spending cuts.
The impact is also visible in Tesla’s dismal European sales, which saw a 76% drop in Germany last month, as Musk’s political alliances spark consumer backlash.
Additionally, Volkswagen has overtaken Tesla in EV sales outside China, signaling that competition is rapidly heating up.
Tesla Stock Technical Analysis: Key Support and Resistance Levels
Tesla currently trades at $222.15 in pre-market trading, confirming ongoing weakness.
- Immediate Resistance: $233.61 – Tesla needs to break above this level for any bullish recovery.
- Key Resistance Above: $242.94 – A push above could signal a short-term reversal.
Major Support Levels to Watch:
- $212.28 – A critical support, but breaking below it could trigger more panic selling.
- $205.53 – The next key level if the decline continues.
- $182.42 – A potential bottom if bearish momentum persists.
MACD and RSI Indicators Show Bearish Momentum
- MACD: Deep in negative territory, signaling continued downside pressure.
- RSI: Approaching oversold conditions, suggesting a possible short-term bounce.
What’s Next for Tesla?
With falling EV demand, intensifying competition, and Musk’s political controversies impacting consumer sentiment, Tesla faces a turbulent road ahead. If sales numbers do not improve, further stock declines could be inevitable. Investors should closely monitor upcoming earnings reports, regulatory developments, and China’s stance on Tesla’s Shanghai factory, which remains a critical revenue driver.
Will Tesla recover, or is the worst yet to come? Stay tuned here on investingcube.com as we will keep you updated as this unfolds.
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