Tesla (TSLA) stock looked like it peaked in December 2024. After the presidential inauguration in January 2025, TSLA stock traded at lower highs every week. This created a downtrend that the electric vehicle giant is having trouble breaking out of.
Last week, Tesla stock fell sharply from the all-important 200-day simple moving average. CEO Elon Musk’s controversial involvement with the Department of Government Efficiency is hurting sales. Even across the Atlantic, sales in Germany fell by 76%, to 1,429 unit sales. In January, sales fell by 60%.
Musk supported far-right parties in Europe, such as Germany’s AfD. Consumers cannot shake off the connection between the CEO and politics. Additionally, the global economy is at an increasing risk of entering a recession. The automotive sector will suffer the most since consumers will not buy expensive vehicles. Instead, they will increase savings.
Support Price
Tesla rapidly fell from a near $500 top to $262.67 on March 8 in the last four months. The price-to-earnings ratio is nearly 130 times. Momentum traders may start to bet against Tesla, even though history is not on the bear’s side. Short-sellers are few, with the short float at 2.20%.
Tesla traded below $150 in early 2023 and again in May 2024. If the stock falls below $200 in the weeks ahead, look for $150 as the support price.
