Test shares traded 2.5% lower on Thursday following another round of bearish headlines.
Early on Thursday, reports coming from Germany showed that Tesla registrations had dropped more than 60%. Similar drops in registration have been seen in France and California recently.
In addition. Bloomberg reported on Thursday that Tesla's planned self-driving service Is trailing behind other competitors like Waymo. Earlier this week, Uber announced its earnings, during which they commented that the timeline for their autonomous driving projects has been extended.
This is bad news for Tesla investors, as Elon Musk has been pushing the idea that Tesla's autonomous driving program was going to come relatively early compared to the rest of the market.
The headlines come at a time when investors are starting to question whether Elon Musk's focus on Tesla Has taken a back seat to his work with the United States government and the Trump administration.
The headlines also come at a critical point for the stock from a technical perspective.
Last week, Tesla shares fell below their 50-day moving average for the first time since October 2024. In addition, the stock has been trying to stay above the $375 level. That level provided support for the stock twice in January.
Technical traders are starting to take notice of the small breakdowns in trends as trading volume has increased on down days for Tesla.
This week's trading activity takes the stock back below levels that the stock traded at just ahead of it’s earnings on January 29.
Tesla shares saw a short 7% rally back above their 50-day moving average following the company’s earnings report on January 29. That rally was based on Musk's bullish comments and outlook for the stock.
Investors should expect that some support will help the stock at the $350.00 price level.
This price level acted as resistance for the stock as it rallied from those October lows. It's often the case that past resistance levels turn into support levels for a stock.
That said, a break below $350.00 will target the stocks. 200-day moving average, which currently trades at $265. That move would represent a 25% decline from today’s price.
Tesla shares remain in a long-term bullish trend but are mired in a new short-term bear market with a price target of $300.
