Takeaways
- Tesla shares fell on Monday, as investors awaited the highly anticipated quarterly results of the EV maker, due after Tuesday’s closing bell.
- Tesla shares have been consolidating within a descending triangular chart pattern since finding a local low in early March. This bearish chart pattern signals a continuation of Tesla’s recent downward trend.
- Investors should watch important support levels on Tesla's chart around $170 and $139, while also tracking overhead areas near $289 and $360.
Tesla (TSLA), shares fell on Monday as investors awaited the highly anticipated quarterly result of the EV manufacturer, due after Tuesday’s closing bell.
Analysts are concerned about the impact of tariffs on the automaker for the rest of the year. The company’s first-quarter deliveries were lower than expected. Market watchers will be waiting for Elon Musk to provide updates on the impact of Washington’s tariff war with China on Tesla.
Tesla shares have reversed direction in 2025. They have fallen 44% from the start of the calendar year amid fears that Musk’s active participation in the Trump administration is damaging the automaker’s reputation, hurting sales and distracting him from leading his company. The stock dropped nearly 6%, to $227.50, on Monday.
Below, we breakdown the technicals in Tesla’s chart. We also identify important levels to watch.
Descending Triangle Takes Form
Tesla shares have been consolidating in a descending Triangle since early March when they found a local bottom. This is a bearish chart that signals a continuation of Tesla’s downtrend. Last week, the 50-day MA crossed below the 200 day MA to form a death cross. This is a technical event which predicts lower prices.
The relative strength index (RSI), however, indicates a lackluster price movement, with the recent upswing of the stock barely pushing the indicator above the 50 threshold.
We can identify two key support areas on the Tesla chart where shares could attract interest in buying amid further selling. We can also locate important overhead areas that are worth tracking during possible recovery efforts.
Key Support Levels to Keep an Eye on
A breakdown below the lower trendline of the descending channel could see sales accelerate towards $170. Investors can place buy limit orders near the lower range of the consolidation period that appeared on the chart in May and June last.
A more significant decline opens the door to a move lower to $139. This location on the graph could attract strong support close to last year’s prominent swing low in April. This area is also just below a projected bar pattern downside target which repositions the stock’s downward trend following an earlier descending triangular pattern on the chart. The analysis assumes a downward continuation movement may play out.
Important Overhead Areas That Are Worth Tracking
Investors should be on the lookout for the $289 mark as the stock may attempt to recover. This area of the chart may provide significant selling pressure around the 200-day MA and last month’s swing-high, as well as the stock’s closing price after the election breakaway gap.
Further buying of Tesla shares could push the price up to $360. Investors who bought the stock lower may look for an exit point near a trendline connecting February’s countertrend-high with a range corresponding trading activity dating back to November last year.
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As of the date of this article, the author did not own any securities listed above.
