Tesla Price Forecast: Stock Crashes 14% as Trump-Elon Feud Derails Robotaxi Hype
Tesla shares plummeted 14.26% on Thursday to $284.70 after a public clash between CEO Elon Musk and U.S. President Donald Trump...
Quick overview
- Tesla shares dropped 14.26% to $284.70 following a public dispute between CEO Elon Musk and President Trump, resulting in a loss of nearly $150 billion in market value.
- The conflict arose after Musk suggested Trump owed his election victory to him, prompting Trump to threaten cuts to federal contracts and subsidies for Tesla and SpaceX.
- Technical indicators show a bearish trend, with immediate support at $278 and potential downside targets at $253.92 and $222.42 if the stock closes below this level.
- Investors are advised to proceed with caution as the stock's future depends on both political developments and technical price action.
Tesla shares plummeted 14.26% on Thursday to $284.70 after a public clash between CEO Elon Musk and U.S. President Donald Trump sent shockwaves through the markets. The fallout, centered on Trump’s threat to terminate federal contracts tied to Musk’s companies, erased nearly $150 billion in Tesla’s market value—its worst session since 2022.
This drama was initiated when Musk suggested Trump owed his election victory to him, spurring a sharp reaction from the president. Trump fired back on Truth Social, hinting at cutting “billions in subsidies” to Tesla and SpaceX.
Investors quickly recalibrated, fearing heightened regulatory scrutiny on Tesla’s autonomous vehicle rollout and its broader reliance on government support.
Wedbush Securities’ Dan Ives captured market sentiment bluntly: “If regulatory pressure rises, Tesla’s robotaxi dream in 25 cities by next year is at risk.”
Technical Breakdown: Bounce or Bearish Trap?
From a technical perspective, Tesla’s rejection at $334—the 23.6% Fibonacci retracement from the $368 peak—was fierce. The price plummeted through the 50-day EMA at $309.86, breaking an uptrend structure that began in April.
The move also printed a bearish engulfing pattern, signaling strong downside momentum.
The MACD has crossed bearish, and histogram bars are accelerating downward, reinforcing the bearish shift. Immediate support has formed at $278 (61.8% Fibonacci level), where buyers may attempt to defend the recent uptrend.
Key Levels to Watch:
- Support: $278.09 → $253.92 → $222.42
- Resistance: $295.29 → $309.86 → $334.31
Trade Ideas for Volatile Days Ahead
Investors should deal with caution as Tesla navigates technical fragility and political noise.
- Bullish Setup: If Tesla holds $278 and prints a bullish reversal candle (hammer or engulfing), a relief rally toward $295 or even $310 is possible.
- Bearish Setup: A close below $278 would confirm downside continuation, with potential targets at $253.92 and $222.42—the March swing low.
With the Musk-Trump clash adding a fresh layer of uncertainty to Tesla’s regulatory and subsidy outlook, the stock’s near-term fate hinges on both macro-political sentiment and clarity on price action. Traders should watch for confirmation before jumping in—this bounce could be a bull trap in disguise.
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