Tesla Inc. has experienced a significant decline in stock value, with a 31.67% decrease year to date and an 8.95% drop in the past month. The technical indicators paint a bearish picture, with the stock trading below its five, 20, and 50-day exponential moving averages. However, there are signs of buying pressure that could potentially lead to a future bullish movement.
Technical Indicators: A Rocky Road Ahead
The current stock price of $263.46 is below its eight-day simple moving average of $268.33, indicating a bearish signal. Additionally, the stock remains below the 50-day simple moving average of $316.12 and the 200-day simple moving average of $287.52, reinforcing the broader downtrend. The Moving Average Convergence Divergence indicator is at a negative 12.09, suggesting continued bearish momentum. The Relative Strength Index of 45.53 indicates that the stock is approaching oversold levels but has not yet reached a rebound zone.
Europe Sales Skid, Wells Fargo Hits The Brakes
Tesla’s sales in key European markets have continued to decline, with registrations in France, Sweden, Denmark, and the Netherlands falling for the third straight month. Denmark saw a significant 65.6% year-over-year drop in March, while first-quarter figures for France and Sweden hit their lowest since 2021. Wells Fargo has added Tesla to its Tactical Underweight list, citing declining delivery growth, price-cut challenges, and execution risks in Tesla’s autonomous vehicle plans as key concerns. The firm has slashed its price target to $130, implying nearly 50% downside.
Model Y Refresh: A Lifeline Or Too Little, Too Late?
Tesla is gearing up to launch a refreshed Model Y, its best-selling SUV. While the update could help reignite demand, Wells Fargo remains skeptical, arguing that Tesla’s ability to drive volume growth is limited without aggressive price cuts. The bank also warns that Tesla’s upcoming “Model 2.5” could cannibalize demand for its other models rather than meaningfully expand its customer base. With first-quarter sales data set for release, investors will be watching closely for any signs of stabilization.
Conclusion
For now, Tesla stock remains stuck in reverse, and Wall Street isn’t ready to hit the gas on a bullish call just yet. The launch of the refreshed Model Y may be a lifeline for the company, but it may be too little, too late to reverse the current trend. Investors will be closely monitoring the stock’s performance and waiting for any signs of a turnaround.