Tesla (TSLA) shares plummeted on Monday as investors await the EV maker’s highly anticipated quarterly earnings, coming after Tuesday’s closing bell.
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The firm revealed weaker-than-expected first-quarter delivery results earlier this month, and analysts have voiced worry about the effect that the Trump administration’s tariffs would have on the vehicle manufacturer the balance of the year. Investors will be anticipating information from CEO Elon Musk about the potential impact of Washington’s trade conflict with China on Tesla.
Concerns that Musk’s active participation in the Trump administration has damaged the automaker’s reputation, hampered sales, and diverted him from running the firm have caused Tesla shares to reverse course in 2025, falling 44% since the year began. On Monday, the stock dropped about 6% to $227.50.
We analyze Tesla’s chart’s technicals below and highlight key levels that are worth keeping an eye on.
The Shape of a Descending Triangle
Tesla shares have been consolidating under a descending triangle, a bearish chart pattern that indicates a continuation of the stock’s current slump, since reaching a local bottom in early March. Additionally, last week the 50-day MA formed a menacing death cross, a technical event that predicts lower prices, by crossing below the 200-day MA.
The relative strength index (RSI), on the other hand, indicates weak price momentum; the recent surge in the stock just raised the indicator back over the 50 mark.
In addition to identifying significant overhead regions that are worth monitoring during possible recovery attempts, let’s look at two critical support levels on Tesla’s chart where the shares may draw buying interest amid more selling.
Important Support Levels to Monitor
If the bottom trendline of the declining channel is broken, selling may pick up speed and reach $170. In this area, investors can try to place buy limit orders close to the lower range of a consolidation phase that developed on the chart throughout last May and June.
A more substantial decline would allow for a move to $139, a point on the chart that would draw substantial support close to the notable April swing low from the previous year. Additionally, this sector is located just below a projected bars pattern downwards goal that repositions the stock from the top trendline of the present pattern, presuming a downward continuation move may occur. This target takes the stock’s downward trend from a previous descending triangle on the chart.
Crucial Overhead Regions to Monitor
Investors should closely monitor the $289 mark amid possible stock recovery attempts. Near the 200-day MA, the swing high from last month, and the stock’s post-election breakout gap closing price, this area of the chart may provide significant selling pressure.
An increase to $360 may result from more purchases of Tesla stock. Investors who purchased the stock at a discount can search for exit options here, close to a trendline that links the countertrend high of February with a range of related trading activity dating back to last November.
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