Tesla's Stock: What to Watch as Earnings Loom

Investors are on edge as Tesla's next earnings report approaches. On Monday, Tesla's stock took a hit, dropping nearly 6% to $227. 50. This decline is part of a larger trend for 2025, with the stock down 44% since January. Why the slump? Concerns are mounting about Elon Musk's involvement in politics and the impact of trade wars on the company. Tesla's stock has been stuck in a descending triangle pattern since early March. This is a bearish sign, suggesting the stock's downward trend could continue. The 50-day moving average recently crossed below the 200-day moving average, forming a "death cross. " This technical event often predicts further price declines. The relative strength index (RSI) isn't helping either, showing weak price momentum. So, what levels should investors watch? If the stock breaks below the descending channel's lower trendline, it could fall to $170. This level saw significant activity last May and June. A more substantial drop could take it to $139, near last April's low. On the upside, $289 is a key resistance level, near the 200-day moving average and last month's high. A break above could push the stock to $360. The broader context is important too. Tesla's first-quarter delivery numbers were disappointing, and trade tensions with China could add more pressure. Investors will be listening closely to Elon Musk's comments on how these factors might affect Tesla's future. Tesla's stock has been on a rollercoaster, and the next earnings report could be a significant event. It's a critical time for Tesla, and investors should keep a close eye on these key levels and broader market trends.