Tesla shares traded more than 5% lower on Monday, putting the stock in a vulnerable price position.
Investors were reacting to early headlines from France that last month saw a 63% drop in registrations of Tesla.
Those headlines were followed by News of California sales declined in 2024 according to Bloomberg. California State, where most Tesla are sold. According to 2025 data, California leads the nation with a significant margin, followed by Florida, Texas and Washington.
Last week, the company reported its quarterly earnings results. For the most recent quarter, Tesla missed its earnings per share target by four cents, with actual earnings of $0.73 per share. The company reported a 2.1% growth of its revenue on a year over year basis. Actual revenue of $25.7 billion was $2 billion less than the consensus from Wall Street.
The company's earnings are an example of Tesla's struggle amid a fiercely competitive market for EV's.
As has been the case with other disappointing earnings reports, Investors continued to take a long-term view of Tesla and its substantial, but very much unproven, growth prospects were resolving around autonomous driving.
That said. Today's headlines reminded investors that Tesla has a long journey to travel to earn it’s valuation.
Over the last two days, technical traders have taken advantage of Tesla's weakness, selling the stock on heavy trading volume. Shares now rest at the $375 mark, the site of their lows in January.
A move below that $375 level will trigger Additional selling from algorithms and technical traders, with a likely target of $325 over the next four to six weeks. That move would also shift the stock's 50 day moving average into a short-term bearish pattern, possibly adding pressure to take the stock to $300.
$300.00 would turn into a long-term buy-the-dip opportunity as investors saw the stock gap above that price level in November. The market is also very reactive to round numbers, especially at the $100 level.
Tesla shares remain in a long-term bull market trend with an intermediate term neutral to bearish outlook.