Tesla Shares (TSLA) Drop Nearly 6% Ahead of Quarterly Report

On Monday, Tesla’s share price fell by almost 6%, dipping below $230 and hovering near its yearly low. Since the beginning of 2025, Tesla shares have lost approximately 44% in value, marking their worst quarter since 2022.

Why Is TSLA Falling?

There is no shortage of investor concerns, including (as reported by various media outlets):

→ Elon Musk’s involvement with the Trump administration, which is said to be distracting him from focusing on Tesla, particularly as signs emerge of slowing progress in the development of robotaxis and autonomous driving technology.

→ A decline in demand — both for the Cybertruck model specifically and the product line in general — especially amid protests and boycotts across the US and Europe. Tesla previously reported 336,681 vehicle deliveries in Q1, down 13% compared to the same period last year.

→ Increased competition from Chinese carmakers, uncertainty around international trade tariffs, and other contributing factors.

According to The Wall Street Journal, analysts at Barclays and Oppenheimer have voiced concerns about “brand dilution” and weakness in China, while Dan Ives of Wedbush is hopeful for an “inspirational vision” from Elon Musk.

Technical Analysis of TSLA Stock

We previously noted the importance of the $220 support level, which prevented the price from falling further during the first half of April (as indicated by the arrow), at a time when broader stock indices showed much more bearish trends.

That level still appears relevant for now, but it’s likely that the upcoming quarterly earnings report will trigger a sharp increase in volatility. Should investors find the results underwhelming, TSLA’s share price could fall to the lower boundary of the current descending channel (highlighted in red), potentially breaching the psychological $200-per-share mark.

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