Tesla’s stock continued its downward trend as it faced another slide on Monday, maintaining its position as the weakest performer among the Magnificent 7 in 2025. According to a report from Yahoo Finance, Tesla shares have experienced an 18% drop year-to-date, with investors worried over the effects of potential tariffs and the revocation of electric vehicle incentives on the automaker’s performance.

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Despite this slump, Tesla’s shares have increased by 31% since the early-November U.S. presidential election, as stakeholders anticipate potential benefits from CEO Elon Musk’s connections with President Donald Trump. Technical analysis reveals a continuation of the stock’s decline after slipping below the crucial 50-day moving average and the neckline of a head and shoulders pattern earlier this month. The relative strength index shows a slight recovery from oversold levels, currently reading below 40, indicating ongoing bearish momentum.

Presently, investors are advised to monitor key support and resistance levels closely. On the downside, the $325 mark might serve as a potential support area, aligning closely with the February low. Failure to maintain this could see Tesla’s stock fall to around $265, an area of buying interest due to its proximity to the 200-day moving average and a prominent trendline extending from September 2023.

Conversely, in potential upswings, investors should watch the $430 level, which could act as resistance close to the right shoulder of the head and shoulders pattern. A breakthrough above this region could propel the stock towards $489, near Tesla’s record high and the peak of the pattern. Data from the IndexBox platform corroborates the ongoing challenges and fluctuations within the auto industry, particularly emphasizing the uncertainties due to evolving trade policies and consumer demand shifts.

Source: IndexBox Market Intelligence Platform