Tesla Stock Plunges 44% as Crucial Earnings Report Looms
Tesla shares tumbled nearly 6% to $227.50 on Monday as investors positioned themselves ahead of Tuesday’s highly anticipated quarterly earnings report. The electric vehicle maker’s stock has experienced a dramatic reversal in 2025, plummeting 44% since January amid growing concerns about CEO Elon Musk’s active involvement in the Trump administration and how it might be affecting both Tesla’s brand reputation and Musk’s ability to effectively lead the company.
Market analysts are particularly focused on how the Trump administration’s escalating trade war with China and recently implemented tariffs will impact Tesla’s operations for the remainder of the year. With the company’s recent release of weaker-than-expected first-quarter delivery numbers earlier this month, Tuesday’s earnings call takes on heightened significance as investors seek clarity on Tesla’s strategic direction amid multiple headwinds.
Technical Indicators Flash Warning Signs
According to Investopedia, Tesla’s stock chart is displaying several concerning technical patterns that suggest further downside may be imminent. The shares have consolidated within a bearish descending triangle formation since early March, indicating a potential continuation of the recent downtrend.
Adding to the technical pessimism, Tesla recently experienced what market technicians call a “death cross” – when the 50-day moving average crosses below the 200-day moving average. This ominous technical event occurred last week and typically forecasts lower prices ahead. Meanwhile, the stock’s relative strength index (RSI) shows lackluster momentum, with recent upswings barely pushing the indicator above the neutral 50 threshold.
Technical analysts are closely watching two key support levels that could attract buying interest if selling accelerates. The first is around $170, near the lower range of a consolidation period that formed during May and June last year. A more significant breakdown could open the door for a move down to approximately $139, which represents last year’s prominent April swing low and could provide substantial support.
“Code Red” Situation Demands CEO’s Full Attention
Once-bullish analysts are now sounding alarms about Tesla’s trajectory under Musk’s divided attention. According to NewsBreak, Wedbush Securities analyst Dan Ives – previously one of Tesla’s strongest supporters on Wall Street – recently slashed his price target by a staggering 43% from $550 to $315, describing the current situation as a “code red” requiring immediate action.
“Musk needs to leave the government, take a major step back on DOGE, and get back to being CEO of Tesla full-time,” Ives reportedly wrote in a Sunday analysis to clients. This sentiment was echoed by Barclays analyst Dan Levy, who noted that Musk stepping away from his Department of Government Efficiency role would be a “key positive” for Tesla, particularly given the critical importance of AI and autonomous technology to the company’s future.
The mounting pressure comes as reports indicate that hundreds of protests nationwide have evolved into a coordinated boycott movement, with disturbing incidents of vandalism targeting Tesla vehicles and infrastructure. The company’s global sales decline across multiple European markets and China suggests these protests may be significantly affecting consumer behavior, with Tuesday’s earnings report expected to provide the first comprehensive data on the boycott’s financial impact.
Operational Challenges Mount Beyond Brand Issues
Beyond the brand damage from Musk’s political activities, Tesla faces substantial operational hurdles from the implementation of new tariffs. The company relies heavily on suppliers in Mexico and China for essential components including automotive glass, printed circuit boards, and battery cells – all potentially affected by the administration’s trade policies.
Adding to investor concerns are reports that Tesla’s highly anticipated affordable vehicle has been delayed until 2026, missing the previously announced first-half 2025 production target. This lower-cost model, expected to retail for under $30,000, is considered vital for revitalizing the company’s sales amid increasing competition from Chinese manufacturers and slowing electric vehicle adoption rates globally.
As investors await Tuesday’s earnings call, attention will focus not only on the financial results but on whether Musk acknowledges the severity of Tesla’s challenges and commits to refocusing on the company. With recovery potential toward the $289 and $360 levels possible if sentiment improves, much depends on the CEO’s willingness to address the growing chorus of concerns from once-loyal investors and analysts who now question his divided priorities.
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