Tesla Stock Closes 5% Lower, Despite Bullish Reversal in S&P 500 and Nasdaq
Tesla stock price lost 5% today despite the reversal in sentiment due to the tariffs rollercoaster, while the S&P 500 and Nasdaq reversed higher.
Tesla (TSLA) extended its decline yesterday, closing down 5% after briefly dropping as much as 7% during the US session. The price has been on a steady downtrend since January 17, shedding $45 per share over that period. During Monday’s US trading hours, TSLA dipped as low as $374 before recovering slightly to close around $384. Despite some after-hours buying, the stock still ended more than 10% lower.
Tesla Chart Daily – The Support Held Yesterday
The Tesla stock has been declining since it made a record high on December 18, with the price slipping below the 20 SMA (gray) on the daily chart. That moving average turned into resistance, rejecting the price several times, while the 50 SMA (yellow) turned into support. But yesterday the 50 SMA was broken, however the support around $370 held on first attempt.
Market Share Losses & Tariff Concerns
Multiple factors have contributed to Tesla’s ongoing decline. A key issue is its shrinking market share in Scandinavia, despite strong overall demand for electric vehicles. In Sweden, Tesla’s January sales plunged 40% year-over-year, with only 405 new cars sold. In Norway, the company sold just 689 vehicles, reflecting another drop.
Adding to investor concerns, the broader stock market has been under pressure following the announcement of new tariffs. However, optimism returned as the White House granted Canada and Mexico a one-month tariff reprieve, signaling possible delays in full implementation.
Tesla Supply Chain Challenges
Elon Musk, who has recently shifted more focus to his role in Washington, D.C., admitted during an earnings call that Tesla remains heavily reliant on global suppliers. With Canada and China being major sources of automotive components, impending tariffs could significantly impact Tesla’s costs and profitability.
Disappointing Q4 Earnings
Tesla’s fourth-quarter earnings report last week further weighed on sentiment. The company posted earnings of $0.73 per share, falling short of analyst expectations of $0.76. Revenue also disappointed, coming in at $25.71 billion—an 8% decline from the previous year and well below the anticipated $27.26 billion. The combination of weak overseas sales, supply chain concerns, and tariff uncertainty continues to pressure Tesla’s stock.
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