As Tuesday’s closing bell is coming closer, Wall Street is anticipating Tesla’s first earnings report that will define the trend for the Magnificent Seven. However, on Monday, Tesla’s stock fell nearly 6% to $227.50, highlighting the volatility of the company’s stock. It also made Tesla one of the biggest losers on the Nasdaq 100. This month, the company also released the first quarter delivery numbers, which were not satisfactory. 

Tesla’s Declining Performance on Benchmarks 

Tesla’s 50-day moving average has crossed below the 200-day MA, forecasting a lower price. Meanwhile, the relative strength index (RSI) points to a lackluster price momentum. Although after Trump’s tariff pause, the stock’s bar bumped to the indicator back above the 50 threshold, it also gives an unsatisfactory forecast. 

After Trump imposed tariffs on imported goods, tech companies, including Tesla, experienced a historic blow. However, with the temporary pause, stock market investors’ trust was restored. Tesla is also facing stock decline due to speculations that Musk is involved in Trump’s administrative matters, including the Department of Government Efficiency (DOGE). 

Global EV Competition

Tesla isn’t the only big player in the EV game anymore. Chinese companies like BYD and Nio are offering affordable EVs, and European brands are also picking up speed. This has pushed Tesla to cut prices in key regions like China, Germany, and the U.S. This price cut is expected to be reflected in Tesla’s First Earnings Report.