Tesla’s first quarter report could push company’s stock down to 132

Tesla stock continues to dip, heightening investor concern about the company’s prospect. On April 21, the closing price was $225.89, down 6.44% from Friday, April 18. This year, Tesla’s capitalization has lost over 40%, significantly more than the overall drop in the S&P 500 index, which has lost over 12%.

The pessimistic outlook for the company is driven by several factors. Those include the delayed launch of a cheaper electric vehicle, declining sales, and reputational issues related to Elon Musk's role in the Trump administration.

Tesla previously reported a 13% drop in first quarter vehicle deliveries from a year ago. This adds to investor fears over the company’s financial performance. Experts think only a successful launch of the new affordable model can be a game changer, but the delay in its development is frustrating Wall Street. 

Additionally, Trump’s trade policies have an impact on the company’s stock. Tesla, with two manufacturing plants in the US, is widely believed to be better positioned than other automakers to deal with the tariffs. Still, the company is not immune to them. Investors will be monitoring the way Tesla handles the duties, as well as the way inflation-worn customers respond to growing prices.

In the near term, markets will be focused on Tesla's first quarter report, which is to be released after the close of trading on Tuesday. The analysts forecast a profit of $1.44 billion, or 33 cents per share, and revenue of $21.34 billion. Investors are awaiting not only sales data but also details on future projects. However, in the short term, Wall Street is likely to react to the report by lowering forecasts for 2025.

Technical analysis confirms the bearish trend. D1 chart shows TSLA being well below both 50- and 200-day moving average. An additional signal is the 50-day exponential moving average (EMA) being below the 200-day EMA, which confirms the negative dynamics. The MACD indicator is in the negative zone, which also points to the prevalence of bearish sentiment. 

The level of 200 may be tested in the nearest future. If the level is broken through, the price may go down to 132. In case of consolidating the level, the price may rise to 247.

Current recommendation: 

Sell at the current price. Take profit – 132. Stop loss – 247.