Tesla (TSLA) Shares Slide Nearly 6% Ahead of Earnings Report

Tesla’s stock price fell close to 6% on Monday, dipping below the $230 mark and approaching its lowest level in the past year. Since the start of 2025, the company’s shares have declined by roughly 44%, marking their weakest quarterly performance since 2022.

What’s Behind the Decline in TSLA Stock?

Investor sentiment has been shaken by several emerging concerns, according to media reports:

→ Elon Musk’s increasing involvement in Donald Trump’s administration is believed to be diverting his attention from Tesla operations. At the same time, progress appears to be stalling on key projects like the robotaxi and full self-driving systems.

→ Consumer interest has waned — both in the flagship Cybertruck and Tesla’s wider vehicle range — amid growing backlash and boycotts across the US and Europe. The company recently announced Q1 deliveries of 336,681 vehicles, down 13% compared to the same quarter last year.

→ Heightened competition from Chinese EV manufacturers, combined with ongoing trade tensions and tariff-related uncertainties, have added further pressure.

Analysts at Barclays and Oppenheimer, as cited by The Wall Street Journal, have raised alarms over potential brand erosion and underperformance in China. Meanwhile, Dan Ives of Wedbush remains cautiously optimistic, hoping Musk will present a compelling strategic vision in the upcoming report.

TSLA Technical Outlook

Previously, the $220 level acted as a strong support, helping to stabilise the stock in early April despite broader market weakness (as indicated by the arrow on the chart).

While this level remains significant, the release of Tesla’s quarterly earnings is expected to inject a burst of volatility. Should the results disappoint, TSLA could break below the psychological $200 threshold and test the lower boundary of its prevailing downward channel (marked in red).

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