Tesla Inc (NASDAQ:TSLA) shares are slipping on Monday. Here’s what you need to know.
- Tesla shares are experiencing downward pressure. Why is TSLA stock trading lower?
What To Know: U.S. auto safety regulators recently opened a new defect investigation into the 2022 Tesla Model 3 over concerns that its emergency door release may be difficult to find or use during an emergency, according to Reuters.
The probe covers roughly 179,071 vehicles and follows a petition claiming the mechanical release is hidden, unlabeled and not intuitive — especially for rear‑seat passengers.
The investigation comes as Tesla has faced other legal scrutiny related to fatal crashes in recent years.
Separately, South Korean battery‑material supplier L&F disclosed that the value of its 2023 supply agreement with Tesla has collapsed from an expected $2.9 billion to just $7,386, Reuters cited.
L&F had been planning to supply high‑nickel cathode materials for 4680 cells through 2025. With Tesla producing fewer of the batteries than planned and the Cybertruck’s sales falling short of CEO Elon Musk’s ambitious forecasts, the company ultimately needed far less material than originally anticipated.
Technical Analysis: Tesla is currently trading above its key moving averages, which suggests a bullish sentiment among traders. The stock is positioned well, trading 0.7% above its 20-day SMA, 4.5% above its 50-day SMA, and 12.3% above its 100-day SMA, indicating strong upward momentum.
The RSI is currently at 57.30, which is in neutral territory. This level suggests that while the stock is not overbought, it still has room to gain momentum before reaching overbought conditions. Meanwhile, MACD is above its signal line, indicating bullish momentum despite Monday’s drawdown.
Key support is at $383.00, while resistance is at $474.00. If the stock approaches support, it could signal a potential reversal or consolidation, while a break above resistance may lead to further gains.
The golden cross in September, when the 50-day SMA crossed above the 200-day SMA, is a positive signal for the longer-term trend. This crossover often indicates a shift to a more sustained bullish phase, which traders should keep in mind.
Over the past year, TSLA has climbed 11.25%, underscoring a resilient longer‑term uptrend. The stock now sits at 87.8% of its 52‑week range, placing it closer to its highs than its lows. While this positioning highlights strength, traders should stay alert for potential pullbacks as the stock approaches key resistance levels.
TSLA Price Action: Tesla shares were down 2.60% at $462.84 at the time of publication on Monday, according to Benzinga Pro.
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