Key Takeaways
Tesla (
TSLA
) shares skidded on Monday as investors await the EV maker’s
highly anticipated quarterly results
, due after Tuesday’s closing bell.
The company released
weaker-than-expected first-quarter delivery numbers
earlier this month, and analysts have expressed concern about the impact that the
Trump administration’s tariffs
will have on the auto maker the remainder of the year. Market watchers will be looking for updates from CEO Elon Musk about how Washington’s
trade war
with China stands to affect Tesla.
Tesla shares have reversed gear in 2025, slumping 44% since the start of the year amid concerns that Musk’s active involvement in the Trump administration has dented the automaker’s brand, hurting sales, and
distracted him from leading the company
. The stock fell nearly 6% to $227.50 on Monday.
Below, we break down the
technicals
on Tesla’s chart and identify important levels worth watching.
Descending Triangle Takes Shape
Since finding a local bottom in early March, Tesla shares have consolidated within a
descending triangle
, a bearish chart pattern that signals a
continuation
of the stock’s recent downtrend. Moreover, the
50-day moving average (MA)
crossed below the 200-day MA last week to form an ominous
death cross
, a technical event that forecasts lower prices.
Meanwhile, the
relative strength index (RSI)
points to lackluster price
momentum
, with the stock’s recent upswing barely bumping the indicator back above the 50 threshold.
Let’s identify two key
support
levels on Tesla’s chart where the shares could attract buying interest amid further selling and also locate important overhead areas worth tracking during potential recovery efforts.
Key Support Levels to Watch
A
breakdown
below the descending channel’s lower trendline could see selling accelerate toward $170. Investors may look to place buy
limit orders
in this location near the lower range of a consolidation period that formed on the chart throughout May and June last year.
A more significant drop opens the door for a
move
down to $139, a location on the chart that could attract strong support near last year’s prominent April
swing low
. This area also sits just below a projected bars pattern
downside
target that takes the stock’s downtrend following an earlier descending triangle on the chart and repositions it from the current pattern’s top trendline, with the analysis assuming a downward continuation move may play out.
Important Overhead Areas Worth Tracking
Amid potential recovery efforts in the stock, investors should keep a close eye on the $289 level. This region on the chart could provide considerable selling pressure near the 200-day MA, last month’s
swing high
, and the stock’s post-election
breakaway gap
closing price.
Further buying in Tesla shares could drive a move up to $360. Investors who have bought the stock at lower levels may look for
exit points
in this location near a trendline that connects February’s
countertrend
high with a range of corresponding trading activity stretching back to last November.
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As of the date this article was written, the author does not own any of the above securities.
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