Tesla (TSLA) Shares Drop Over 15%
Among the biggest decliners in the technology stock index (we covered the reasons behind the Nasdaq 100s drop earlier this morning) are Tesla (TSLA) shares, which have plummeted by more than 15% in a single daytheir worst performance in five years.
Why Tesla (TSLA) Shares Fell
One of the key bearish drivers behind Teslas stock decline appears to be Elon Musks political involvement in the Trump administration. For investors, this could signal concerns that:
The CEO is not devoting enough attention to the automakers operations.
Discontent among those who oppose Musks political stance could slow Teslas sales.
And what about Musk himself? He has:
Acknowledged that business is tough, particularly following a cyberattack on his social media platform, X, but stated he intends to focus on politics for at least another year.
Reassured investors that, in the long run, everything will be fine.
Technical Analysis of Tesla (TSLA) Stock Chart
In our previous analysis, we identified a descending channel (marked in red) and suggested that if the psychological support level of $300 per share failed to hold, further declines could follow.
With updated chart data, we can see that:
The downward channel remains valid, reinforced by a test of its median line (marked by an arrow).
The $260 level (previous support) and $300 may act as resistance going forward, with the orange descending trendline also potentially serving as resistance.
Since the price has now fallen below the lower boundary of the red channel, there is a possibility that bulls may attempt to recover some losses, banking on a long-term rebound.
Tesla (TSLA) Stock Price Forecast
Analysts remain cautiously optimistic, possibly hoping that Musks close ties with Trump will accelerate Teslas rollout of its robotaxi service. Another potential positive catalyst is Teslas market entry into India.
According to TipRanks:
13 out of 36 analysts recommend buying TSLA shares.
The average 12-month price target for TSLA is $340.
Read more: https://fxopen.com/blog/en/oa-tesla-tsla-shares-drop-over-15/
Text source: Forex Trading Blog
