Catenaa, Thursday, April 17, 2025- Tesla shares have officially entered a “death cross,” a technical indicator that often signals extended market weakness, amid a turbulent stretch for the electric vehicle maker, a report said.
The development, flagged this week by Business Insider, occurs when a stock’s 50-day moving average falls below its 200-day moving average.
Tesla’s stock has now triggered the bearish formation, mirroring similar patterns seen across major indexes like the S&P 500 and Nasdaq 100 as global tariff tensions intensify.
Tesla’s stock is down more than 33% year-to-date, battered by market uncertainty and ongoing criticism of CEO Elon Musk.
While Musk has sought support from the Trump administration—securing promotional appearances and regulatory leniency—the company’s public image has taken a hit following widespread protests and growing scrutiny of its labor and production practices.
Analysts warn that while the “death cross” garners attention, its predictive power is mixed. Reuters reports that historically, the signal only correctly forecasts deeper sell-offs about half the time. In many cases, it marks the bottom rather than a new low.
Still, the symbolic weight of Tesla joining the ranks of other death cross-struck companies adds to investor unease. Market watchers say continued volatility is likely, especially as the White House’s fluctuating tariff policies sow confusion across multiple sectors.
Tesla’s rough patch reflects broader fragility in tech and manufacturing stocks, as political unpredictability and shifting regulations reshape investor expectations heading into the second quarter.
