Tesla (NASDAQ: TSLA) is experiencing a short-term sell-off as the stock’s post-election rally appears to be cooling.
Now, a trading expert has warned that the electric vehicle (EV) manufacturer could see further losses if the price trajectory fails to turn bullish.
During the last trading session, TSLA was valued at $332, down about 1.5% for the day, with more losses on the weekly chart, showing a drop of over 3%. Tesla was up 1.3% in pre-market trading at $337 on November 29.
Picks for you
The current bearish sentiment has caused Tesla’s BX Trender to flip red, a critical warning signal indicating weakening market pressure, as trading expert Peter DiCarlo observed in a November 28 X post.
The BX Trender is a technical indicator that tracks market momentum and buying pressure. Green signals indicate strong buying, while red signals show weakening pressure or bearish momentum.
Tesla’s key levels to watch
In October, a similar red signal led to a 16% drop in two weeks before the stock rebounded. DiCarlo sees $300–$310 as a likely bottom if the sell-off continues, with institutional investors expected to step in near this support level.
Despite the short-term bearish outlook, the monthly chart remains bullish, showing strong accumulation and higher highs. DiCarlo remains confident in Tesla’s long-term prospects, holding his 2027 calls and anticipating a potential breakout into the $330 range over the next 12 to 18 months.
Notably, Tesla’s stock corrected after its push toward $400 faltered after building on the optimism around Donald Trump’s election and his close ties to CEO Elon Musk.
While short-term sentiment is mixed, bulls remain optimistic about Tesla’s future growth, focusing on key products and technologies such as autonomous driving and artificial intelligence (AI).
In this case, Tesla’s share price recently rose after it was reported that President-elect Trump’s transition team plans to prioritize a federal framework to regulate self-driving vehicles at the U.S. Transport Department. This was one of Musk’s key proposals during the election campaign.
Wall Street outlook on Tesla stock
These fundamentals have led to varied analyst outlooks for the company. As per a Finbold report, UBS analyst Joseph Spak raised Tesla’s price target to $226 from $197, maintaining a ‘Sell’ rating, and expressed concerns over the market’s $1 trillion valuation of Tesla’s AI initiatives, including robotaxis and Optimus.
On the other hand, Wedbush Securities Dan Ives considers Tesla the most undervalued AI stock, citing its advancements in full self-driving (FSD) technology. He believes Tesla’s AI progress could push the company to a $1 trillion valuation. He predicts the company will benefit from a Trump administration focusing on FSD, with Musk confirming AI integration in driving technology.
Meanwhile, on November 12, Morgan Stanley (NYSE: MS) reiterated its ‘Buy’ rating for Tesla, citing its leadership in AI and autonomous technology. Analyst Adam Jonas noted Tesla’s strong position to benefit from policy changes despite unclear federal regulations on self-driving cars.
Overall, although Tesla’s technical setup is bearish, the company’s fundamentals—especially regarding the FSD technology and the potential impact of the upcoming Trump administration—will play a key role in driving bullish sentiment around the stock.
Featured image via Shutterstock
