Tesla’s (TSLA) beat-up stock has found support on the charts, for now.
After a brutal stretch this month that brought the stock’s year-to-date decline to more than 30% at one point, Tesla’s stock has rallied back above the 100-day moving average, Yahoo Finance data shows. The 100-day moving average is a key measure of longer-term market sentiment.
The reclaiming of the 100-day average comes after a nearly 6% bounce on Thursday. Shares rose about 1.5% in pre-market trading on Friday.
“Sentiment was way too negative — the best is still ahead for Elon Musk,” Wedbush analyst Dan Ives told me.
Tesla remains one of Ives’ top picks for 2025.
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Shares are still down 12% year to date and the worst-performing component of the “Magnificent Seven” — Apple (AAPL), Amazon (AMZN), Nvidia (NVDA), Google (GOOG), Microsoft (MSFT), Meta (META), and Tesla.
The drop is with good reason from a fundamental perspective.
Tesla sold 63,238 vehicles in China in January, according to data released this week by the China Passenger Car Association. The figure marked a steep 33% drop from December.
At the same time, Australia’s Electric Vehicle Council reported that Tesla’s overall sales fell 33% year over year in January.
In the US, prices on used Cybertrucks, Model 3s, Model Ss, Model Ys, and Model Xs continue to drop as Tesla faces increased EV competition and consumers opt for hybrids.
In the past 30 days, the average price of a Tesla has declined 1%, according to data from CarGurus. That brings the decline over the past 90 days to 5.49%. The fastest price declines are being witnessed in the Cybertruck.
“We’re cautious on what’s happening for the EV maker,” Oppenheimer analyst Colin Rusch said on Yahoo Finance’s Market Domination.
Meanwhile, new tariffs from the Trump administration stand to raise costs for Tesla and other automakers.
On Monday, the president signed two executive orders imposing additional 25% tariffs on steel and aluminum. Both steel and aluminum are key raw materials used by Tesla.
Trump’s new trade war with China doesn’t help either — a 2023 study by Nikkei found that 40% of the suppliers for materials used in Tesla’s batteries are Chinese companies.
Tesla’s fourth quarter left a lot to be desired.
The company’s earnings per share missed analyst estimates by a penny. Automotive sales fell 8% year over year alongside price cuts across the Tesla vehicle lineup.
Tesla’s stock slide hasn’t stopped others on the Street besides Ives from coming out defending the company.
