Tesla’s (TSLA) stock chart remains damaged goods as the EV giant battles bruised investor sentiment.
Shares remain below the key 50-day, 100-day, and 200-day moving averages, according to Yahoo Finance analysis. The stock had rallied from $284 on June 4 to $348 on June 24 as Musk and his one-time friend President Trump cooled their public battle. However, the rally wasn’t convincing enough to push the stock beyond its 100-day moving average — a loss for Tesla bulls.
Shares are now back near the June 4 short-term lows.
Tesla’s stock initially breached its 200-day moving average back on Feb. 25 as the Street worried about the carmaker’s first quarter earnings. The concerns were well-founded, as Tesla reported weak results, and may do so again for the second quarter in just a few short weeks.
“When you look at the technicals [on Tesla], at least on a short-term basis, it would not be surprising to see the stock move lower,” LPL Financial chief technical strategist Adam Turnquist warned on Yahoo Finance’s Opening Bid (watch above).
Podcast: Why this big Tesla shareholder is staying bullish
The latest news only added further bearishness to Tesla’s stock.
Shares dropped 6.79% on Monday as Trump and Musk returned to public battle. Musk said he has created his own political party, a move Trump heavily criticized.
Further, the new tax and spending bill signed into law by Trump on July 4 ends the electric vehicle tax credit on Sept. 30. That’s terrible news for Tesla, argues William Blair analyst Jed Dorsheimer.
“The elimination of the corporate average fuel economy (CAFE) fines requires a reset in expectations,” Dorsheimer wrote in a note. “While the $7,500 tax credit is likely to affect demand, the combination of a demand headwind and over $2 billion in profit from regulatory credits at risk may be too much for investors to bear. Unlike the EV tax credit, we expect the reduction in regulatory credit revenue to result in a direct hit to profitability, prompting yet another across-the-board reset to Street models.”
Even from a fundamental perspective, an easy argument could be made that buying Tesla right now is a hard sell.
Tesla said last week it delivered 384,122 vehicles in the second quarter, down 13.5% year over year.
Consensus earnings per share (EPS) estimates for 2025, 2026, and 2027 have plunged 77%, 70%, and 71% for Tesla since October 2022, according to new research from JPMorgan auto analyst Ryan Brinkman.
Investors can study Tesla’s falling EPS on the Yahoo Finance platform.
