Shares of automotive giant Tesla Inc (NASDAQ: TSLA) are currently trading around $345, down roughly 30% from their December highs and stuck in a grinding downtrend that shows little sign of reversing. What initially looked like a healthy pullback in January has increasingly resembled something more long-term, with each rally attempt being sold into and lower lows being set.
At the start of the year, there was a clear narrative shift underway. Investors were beginning to buy into Tesla’s positioning as a robotics and automation company rather than just an electric vehicle (EV) manufacturer. That reframing helped support the company’s triple-digit valuation and resilient bullish sentiment, but in recent weeks, that optimism has started to fade.
Weak delivery data, released this week, has brought the focus back to the core business, and a lack of meaningful results from the pivot to automation means the bulls have little to hold onto. All that means that, with a little less than two weeks until its next earnings report, it looks like things could get worse for Tesla before they get better. Let’s jump in and see exactly what’s going on.
