Tesla (TSLA) Share Price Drops by Over 8%
The Tesla stock chart today paints a grim picture for investors, as TSLA's price during trading on 25 February:
fell by more than 8% in a single day;
dropped below the psychologically significant $300 per share mark for the first time since early November 2024 (despite nearing $500 in late December 2024).
Why Tesla (TSLA) Shares Have Fallen
Teslas sales in Europe fell by 45% in January compared to the same period last year, even as overall EV sales in Europe grew by 37%.
This sharp drop in European sales has heightened concerns that CEO Elon Musks political activities are negatively affecting the companys business.
Technical Analysis of Tesla (TSLA) Stock Chart
Price movements in 2024 formed a key upward trend channel (marked by blue lines), but yesterdays decline led to a bearish break below the lower boundary of this trend. Specifically:
The $330 level, where the lower blue boundary was breached, now appears to be a significant resistance level.
The BC retracement is approximately 50% of the AB decline a bearish signal.
Price movements in 2025 outline a descending trend channel (marked in red), which is becoming increasingly relevant.
If the psychological support level of $300 per TSLA share fails to hold, the price may continue to decline towards the key $270 level. This level acted as resistance to growth in the second half of 2024 but was broken after news of Trumps victory.
Tesla (TSLA) Share Price Forecast
Analysts remain cautiously optimistic, possibly hoping that Musks close ties with Trump will help accelerate the launch of Teslas robotaxi service.
Another potential positive driver could be Teslas entry into the Indian market.
According to TipRanks:
13 out of 35 surveyed analysts recommend buying TSLA shares;
The average 12-month price target for TSLA is $357.
Read more: https://fxopen.com/blog/en/oa-tesla-tsla-share-price-drops-by-over-8/
Text source: Forex Trading Blog
