Tesla is back in the spotlight — but not for its tech or earnings. A political clash has shaken investor confidence, putting its ties to government contracts under scrutiny. Now, traders are watching both charts and headlines for what comes next.
Tesla’s stock took a sharp tumble as market participants responded not only to headlines but to deeper concerns over potential shifts in government support.
The sharp sell-off drove the price through multiple support levels, reaching an intraday low of $273.18 — marking Tesla’s steepest daily loss since September 2020.
The downturn followed a heated public exchange: former President Donald Trump accused Elon Musk of disloyalty and of unfairly profiting from electric vehicle (EV) subsidies.
In response, Musk countered with claims that he played a pivotal role in Trump’s 2024 re-election campaign and hinted at retaliatory moves across his businesses — including ventures with federal contracts like SpaceX.
While analysts at Wedbush described the market reaction as “emotion-driven but not irrational,” they also highlighted that Tesla’s long-term revenue is closely tied to government partnerships.
Should political tensions escalate into tangible policy changes, the risks to Tesla’s fundamentals may become more pronounced.
Tesla (TSLA) has seen a rapid price drop in recent trading sessions, falling over 12% from a recent high near $324 to a low around $273 before stabilising near $283.
Short-term technical indicators reveal persistent bearish momentum.
On the 15-minute chart, the 5, 10, and 30-period moving averages are all trending downward with increasing separation — a clear sign of sustained selling pressure and the absence of meaningful recovery attempts.
The MACD (Moving Average Convergence Divergence) indicator also remains firmly in negative territory, with no signs of a bullish crossover. Red histogram bars continue to print, reinforcing the view that downward momentum remains intact.
A modest bounce off the $273 support zone may suggest short-term buying interest, but without a confirmed reversal pattern or bullish MACD divergence, any recovery may be short-lived.
Resistance is now expected between $300 and $310, and unless buyers return with strong volume, the risk of further declines remains high.
The coming 48 hours could prove critical in determining both the tone of the political dispute and Tesla’s price direction.
A de-escalation in rhetoric may provide relief for the stock, potentially triggering a short-term rally.
However, if tensions continue to rise and federal scrutiny intensifies — particularly over government-linked contracts — Tesla may face additional downward pressure.
Traders are advised to remain vigilant, watching for heightened volatility and any signals of regulatory or policy responses that could affect the company’s operations and future growth prospects.
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