Tesla stock (NASDAQ: TSLA) plunged 7% today, extending its recent selloff as investors dumped high-growth names amid growing concerns over electric vehicle (EV) demand, rising input costs, and regulatory risks. With today’s steep decline, Tesla is once again testing a major technical support zone — and the outlook is turning increasingly bearish.
The stock briefly broke below the $252.40 level in intraday trading, a zone that has acted as a pivot point for much of 2024. Sentiment remains fragile ahead of earnings, with analysts slashing price targets and options markets pricing in elevated volatility.
TSLA Technical Analysis – Key Levels to Watch
1-Week Performance: -9.3%
Today’s Move: -7.0%
- Immediate Resistance: $263.77 – A bounce from here may stall unless bulls reclaim this zone convincingly.
- Major Resistance: $271.25 – Tesla must break above this level to reverse the current downtrend.
- Immediate Support: $242.94 – Currently being tested. A breakdown here could trigger another leg lower.
- Major Support: $233.61 and $212.28 – Failure to hold these zones could drag TSLA back toward the $205.53 low.
Why Is Tesla Falling?
- EV Demand Concerns: Slowing sales in key markets like China and Germany are pressuring delivery expectations.
- Margin Pressure: Higher raw material costs and price cuts across Tesla’s lineup are compressing operating margins.
- Regulatory Uncertainty: Growing scrutiny around Tesla’s FSD (Full Self Driving) software and labor practices are adding headline risk.
- Market Rotation: Investors are rotating out of growth and tech into value and defensive sectors as interest rate fears resurface.
Tesla Faces EV Pressure as BYD Strengthens on Policy Support and Tariff Shield
While Tesla stock slumped 7% today, its Chinese counterpart, BYD, has been steadily gaining ground. Shares of BYD rose, reflecting growing confidence in its domestic market leadership and resilience to trade headwinds.
With the U.S. considering tariffs on imported electric vehicles — particularly those manufactured in China — companies like BYD benefit from strong local policy support and robust internal demand.
TSLA Stock Outlook – Bearish Bias Builds Below $250
Tesla’s technical structure remains weak, with repeated rejections at resistance and momentum fading fast. If the stock fails to hold $242.94, bears may target the $233 and $212 zones next. A close below $250 would confirm a breakdown of near-term support and increase downside risk heading into earnings.
Traders should be cautious — Tesla is in a high-volatility zone, and the next few sessions could be critical in determining whether this is a deeper correction or a full trend reversal.