Tesla (TSLA) shares declined on Monday as investors anticipate the company’s upcoming quarterly earnings report, scheduled after Tuesday’s market close. Earlier this month, Tesla announced weaker-than-expected first-quarter delivery figures, raising concerns among analysts about the potential impact of tariffs imposed by the Trump administration on the remainder of the year. Market participants are keen to hear updates from CEO Elon Musk regarding the implications of the U.S.-China trade tensions for Tesla.
In 2025, Tesla shares have reversed their earlier gains, dropping 44% since the start of the year. This decline has been attributed to worries that Musk’s involvement with the Trump administration has harmed the automaker’s brand and distracted him from focusing on the company’s leadership. On Monday, the stock fell nearly 6%, closing at $227.50.
Technically, Tesla’s chart has formed a descending triangle, a bearish pattern indicating a continuation of the stock’s downtrend. The 50-day moving average (MA) crossing below the 200-day MA last week created a “death cross,” signaling further price declines. Additionally, the relative strength index (RSI) reflects weak price momentum, as the stock’s recent rally barely pushed the indicator above the 50 threshold.
Two key support levels on Tesla’s chart are worth noting. A breakdown below the descending channel’s lower trendline could accelerate selling toward $170, where investors might place buy limit orders near the lower range of a consolidation period observed last year. A more substantial drop could lead to $139, an area that may provide strong support near last year’s April swing low and aligns with a projected downside target based on an earlier descending triangle pattern.
For potential recovery efforts, investors should monitor the $289 level. This region could present significant selling pressure near the 200-day MA, last month’s swing high, and the stock’s post-election breakaway gap closing price. Further buying could propel the stock up to $360, where investors who purchased at lower levels might consider exiting near a trendline connecting February’s countertrend high with corresponding trading activity since last November.
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