Tesla (TSLA) stock experienced a decline of 4.9% on Friday, reaching $235.42 per share. This drop places the shares below a crucial resistance level, as identified by certain technical analysts. The last time Tesla traded below $240 per share was in early 2017.
This downward trend is a continuation of the slide that began in January 2019. While Tesla's stock has plummeted by approximately 30% this year, the S&P 500 has been on the rise.
Earlier this year in January, our team spoke with technical analyst Zev Spiro from Orips Research. At that time, Spiro had noted that as long as Tesla's stock remained between the support level of $245 and the resistance range of $380 to $389.50, it would be considered in a neutral trend. Spiro had even suggested that the shares might experience a significant surge.
However, the release of substantial losses in the first quarter of this year, along with expectations of additional losses in the second quarter, have altered this outlook dramatically. This shift is noteworthy considering Tesla reported two consecutive profitable quarters at the end of 2018, causing some bullish investors to reconsider their stance.
Looking forward, some technical analysts anticipate the stock to face another downward resistance level around $200 per share. This potential pullback would represent a further decline of approximately 15%.