Tesla (TSLA.US) shares are down nearly 6% today, contributing to the broader 1.6% sell-off on the Nasdaq. Alongside Nvidia, they are among the weakest performers on the U.S. stock market.
- Tesla’s stock dips today after Canada froze $43 million in electric vehicle subsidies for the company and excluded it from future rebate programs. This retaliatory move was a direct response to tariffs imposed by President Trump on Canadian goods.
- The decline ends Tesla’s recent momentum, which had driven the stock up for five consecutive sessions and led to a brief breakout above the 200-day moving average yesterday. Investors are also cautious ahead of Trump’s expected announcement on new car import tariffs, which could significantly impact supply chains and profitability across the auto industry.
- Tesla recently warned regulators that escalating trade tensions could increase production costs and hurt its competitiveness in international markets.
Tesla (D1 Chart)
Tesla shares are declining, and the EMA200 and EMA50 exponential moving averages are on track to form a ‘death cross’ pattern.
Source: xStation5
Tesla (H1 Chart)
Looking at the stock on the hourly interval, we can see the path of least resistance points downward. Sentiment weakened again shortly after the price broke above the 200-session moving average (red line) at $284. The stock had rebounded more than 25% from its local low, rising from around $220 to $280.
Source: xStation5
With the business slowing down, price-to-earnings ratios and forward 12-month P/E multiples exceed 100, and investors — despite recent declines — are still paying a significant premium for shares in Elon Musk’s company. Recently, Tesla also announced it is seeking regulatory approval in China to sell its autonomous driving software.
Source: XTB Research, Bloomberg Finance L.P.
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