Tesla stock hit fresh 2025 lows on Tuesday and closed below the 200-day moving average for the first time since August 2024, as President Donald Trump's tariffs go into effect, with Canada and China retaliating with duties of their own.
TSLA in recent days broke below potential floors at the 325-360 price range, and then the 300 level. It is now fighting to hold the 200-day line, around 279 — a crucial level of technical support.
However, Tesla stock edged slightly lower early Wednesday after falling 4.4% to 272.04 during Tuesday's stock market action, hitting a new 2025 low of 261.84. This comes after the stock swung as high as 303.94 early Monday before dipping 2.8% to 284.65. Tesla sank more than 13% last week.
President Trump's 25% tariffs on goods from Canada and Mexico went into effect Tuesday. Canada countered with plans to impose 25% tariffs on nearly $100 billion of U.S. imports. China, against which tariffs were doubled to 20%, retaliated with additional tariffs of up to 15% on some U.S. products.
Tesla Chief Financial Officer Vaibhav Taneja told analysts on the Q4 earnings call "there's a lot of uncertainty around tariffs."
"Over the years, we've tried to localize our supply chain in every market, but we are still very reliant on parts from across the world for all our businesses. Therefore, the imposition of tariffs, which is very likely, will have an impact on our business and profitability," Taneja said.
Tesla Is A Big S&P 500 Loser In 2025, But It's Not Cheap
Tesla Stock Performance
Prior to Tuesday's market open, Tesla had hit a fresh 2025 low on Friday. It rebounded at a key level as concerns mount that Chief Executive Elon Musk's high-profile role with the Trump administration is causing serious deterioration in the EV giant's brand image in the U.S. and Europe.
The stock fell as low as 273.60 on Friday morning, marking a new three-month low and undercutting the 200-day line. However, TSLA shares bounced back for a 3.9% gain, snapping a six-session slide.
Shares dived 27.6% in February, beginning with a gap below the 50-day moving average. TSLA stock is 41% below the Dec. 18 all-time high of 488.54.
The market capitalization fell back below $1 trillion on Feb. 25 and was $915 billion as of Monday's close.
Tesla stock has a 21-day average true range of 5.5%. The ATR metric is available on IBD's MarketSurge charting tool. It gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
In the current, unpredictable market, IBD suggests stocks with ATRs of 3 or below.
Tesla stock ranks fifth in the 35-stock IBD Auto Manufacturers industry group. The stock has a 70 Composite Rating out of a best-possible 99. Shares also have an 89 Relative Strength Rating and an 84 EPS Rating.
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