Tesla has reached a "death cross," indicating increased volatility and possible future losses, the first such occurrence since May 2022. This crossover between the 50-day and 200-day moving averages historically signals rough days ahead. Investor concerns are amplified by a 50% drop in Tesla's shares since December, attributed to CEO Elon Musk's controversial actions and declining sales as competition rises. The broader market, including S&P 500 and Nasdaq 100, has also seen a death cross, reflecting overall economic volatility. Investors await Tesla's Q1 earnings amid disappointing delivery forecasts.
"While every major decline starts with a 'death cross,' not every 'death cross' leads to a major decline," Oppenheimer & Co. head of technical analysis Ari Wald told BI last month.
Tesla shares have dropped by around 50 percent since December, shortly after Donald Trump was elected."
Investors are bracing for bad news ahead of Tesla's Q1 earnings call next week. Early delivery numbers for the January-March period have already fallen well short of expectations.
Sales have plummeted across the globe, with weary consumers opting for a growing number of alternatives, many from China.
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