Tesla Inc shares are experiencing a decline despite a recent report from federal investigators. The report largely clears the company’s Full Self-Driving system of responsibility in a fatal Texas crash. This article aims to explore the reasons behind the sudden decline in Tesla’s stock price.
Federal Investigators Point to Driver Error
The National Transportation Safety Board has published its initial findings from a June 19 collision in Katy, Texas. The collision involved a 2025 Tesla Model 3 that plowed into a home at speeds exceeding 70 miles per hour. The posted speed limit in the area is 30 miles per hour. A 76-year-old resident of the home, Martha Avila, sustained fatal injuries and died at a nearby hospital.
- Data from the vehicle indicates that the 44-year-old driver, Michael Butler, had switched on Full Self-Driving before the crash.
- However, the driver brought the system’s control to an end by jamming the accelerator pedal to the floor, sending the car surging beyond any speed the system would have permitted.
- The conclusion supports Tesla’s argument that the crash was a product of human intervention rather than a technological failure.
Critical Technical Levels for TSLA to Watch
Tesla is still working uphill from a trend perspective. The stock is trading below its 20-day, 50-day, and 200-day Simple Moving Averages (SMA).
- The 20-day SMA is below the 50-day SMA, indicating that the short-term trend has not turned back to bullish.
- The Relative Strength Index (RSI) is at 45.85, signaling neutral to soft momentum.
- The bigger-picture backdrop still leans bearish after the April death cross, with the 50-day SMA moving below the 200-day SMA.
Key Levels to Watch
- Key Resistance: $433.00 - a nearby round-number zone that can act as overhead supply during rebounds.
- Key Support: $380.00 - a nearby round-number level close to current trade where buyers may try to defend the pullback.
TSLA Shares Are Dipping
Tesla shares were down 1.30% at $389.33 at the time of publication on Thursday. The stock’s price action suggests that investors are still cautious about the company’s prospects despite the favorable report from federal investigators.