Tesla Stock In Free Fall Ahead Of Crucial Q1 Earnings: Here Are Key Levels To Watch

Tesla, Inc. TSLA stock is on a steep decline and could face more downside pressure in the lead-up to its quarterly results scheduled for Tuesday.

The company’s challenges are partially due to a lack of visibility into its near-to-medium-term outlook. The Elon Musk-led company has been struggling with slowing sales volume, and efforts to boost sales have squeezed margins.

The lack of a clear strategic vision further clouds Tesla’s outlook. After previously affirming a low-cost model for production in late 2025, rumors now suggest the project is delayed, while the company focuses on promoting its self-driving software and robotaxi service. To address cost issues, Tesla also began downsizing operations through layoffs announced earlier this week.

Adding to the downward pressure, analyst downgrades are raining in. Deutsche Bank Securities analyst Emmanuel Rosner downgraded the stock from Buy to Hold, according to fund manager Gary Black, citing potential Model 2 delay, and reduced the price target from $189 to $123. Barclays analyst Dan Levy on Tuesday cut his price target from $225 to $180.

In premarket trading on Thursday, Tesla fell 2.48% to $151.59, according to Benzinga Pro data.

What’s Next For Stock: Tesla’s stock has been down for four sessions now and is on track to open lower on Thursday.

Source: Benzinga

The 14-day relative strength index is at 35, suggesting extremely oversold levels.
However, the stock’s fundamental weaknesses are significant, and it currently inspires little confidence among investors.

The next downside support is likely at the $130 level. If that level fails to hold, the stock could drop all the way to the $104 level or even the $86-$100 region.

Tesla’s earnings report on Tuesday is a key event to watch, as past performance suggests a potential post-earnings decline.

Market News and Data brought to you by Benzinga APIs

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