Tesla (TSLA) Share Price Falls by 3.5%Tesla (TSLA) Share Price Falls by 3.5%
Yesterday, the share price of Tesla (TSLA) dropped by 3.5%, placing it among the five worst-performing stocks of the day in the S&P 500 index (US SPX 500 mini on FXOpen). Since the peak on 29 May, the decline now totals nearly 10%.
Why Tesla (TSLA) Shares Are Falling
Among the bearish factors are:
→ A drop in car sales in Europe. Sales in Germany fell by 36% year-on-year in May.
→ Growing competition from China. May deliveries from Tesla’s Chinese factory were down 15% year-on-year.
→ Elon Musk’s criticism of the US President’s proposed government spending bill.
Media reports also suggest that Musk took offence at staffing decisions at NASA, while Trump is reportedly losing patience with Musk over his attacks on the spending bill.
A potential rift between Musk and Trump could have far-reaching consequences — including for TSLA shares.
Technical Analysis of TSLA Stock Chart
Six days ago, we:
→ Drew an ascending channel (shown in blue), noting that the upper boundary could pose a challenge to further gains;
→ Highlighted the $355–$375 zone (shown in purple) as a possible resistance area;
→ Suggested a correction scenario following a roughly 27% surge in TSLA’s stock price during May.
Since then, the price has dropped towards the median line of the ascending channel. If this fails to offer sufficient support, the correction may continue towards the lower boundary of the channel, which is reinforced by support around the psychological $300 level and former resistance at $290.
News related to the planned rollout of Tesla’s robotaxi trials could significantly impact TSLA’s price movements in June.
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