Tesla Shares Continue Downward Trend Amid Investor Concerns

Menlo Park, California — Tesla Inc. shares fell 2.2% on Monday, closing at $330.53, continuing a worrying trend that has left the electric vehicle manufacturer as one of the weakest performers in the stock market so far in 2025. The company’s stock has plummeted approximately 18% year-to-date as investors assess the impact of the phased removal of electric vehicle (EV) incentives and the overall market competition on Tesla’s business model.

Despite its recent slump, Tesla shares remain up 31% since the early-November U.S. presidential election, buoyed by expectations that CEO Elon Musk‘s close ties with President Donald Trump could potentially benefit the company in the long run. However, investors are closely monitoring pricing patterns and technical indicators for signs of a market recovery.

Recently, Tesla’s stock has shown bearish momentum after slipping below critical price levels earlier this month. Analysts note that the stock’s Relative Strength Index (RSI) remains below 40, which signifies a continued negative price trend. Investors are particularly interested in key support levels, especially the $325 mark which was tested on Monday, as it could define the next potential upside for the stock.

The $325 level aligns closely with the February low and the lower range of a technical pattern known as a head-and-shoulders formation. A failure to maintain above this support could see shares decline further to around $265, which historically has been viewed as a buying opportunity due to its alignment with various trendlines observed since September 2023.

Should there be a reversal in trends, the $430 area is critical for potential resistance as it has previously thwarted upward momentum near the right shoulder of the head-and-shoulders pattern. A decisive close above this price point could catalyze a move towards $489, drawing significant attention as this level doubles as the peak in the head-and-shoulders structure.

Market analysts, like Dan Ives from Wedbush, remain optimistic about Tesla’s future, maintaining an outperform rating and a price target of $550. Ives highlights that while concerns about Musk’s diverse responsibilities—most notably his involvement with DOGE—may influence investor sentiment, he believes the demand for Tesla’s vehicles, particularly in the U.S. and Europe, remains sufficiently strong.

“The worry of the Street is that Musk dedicating so much time to DOGE takes away from his focus at Tesla,” Ives wrote. “However, Musk has always been able to balance his many initiatives better than any other CEO we have seen.”

Wedbush points to upcoming vehicle launches, including a mass-market vehicle in the first half of the year and advancements in Tesla’s autonomous vehicle technology, as catalysts that could reignite investor interest. Additionally, the anticipated launch of a robotaxi service in Austin, Texas, this June may be a significant turning point for the company, especially with new updates to the Model Y.

As the year progresses, investors are advised to closely monitor the technical price levels mentioned, alongside company developments that could influence Tesla’s stock trajectory. The outcome of this trend will likely shape investor sentiment in the immediate future.