Benzinga - by Surbhi Jain, .
Tesla, Inc. (NASDAQ:TSLA) witnessed a 4% decline in its stock in Monday afternoon trading on the heels of potential layoffs exceeding 10%.
Despite a positive outlook in major index futures, Tesla’s premarket trading also reflected a significant downtrend, highlighting market concerns.
Related Link: Why Tesla Stock Is Sliding Before Opening Bell Today
What’s Impacting Tesla Stock Monday? Rumors swirling around the potential layoffs, possibly impacting up to 20% of Tesla’s workforce. The news contributed to investor unease, leading to Tesla stock sliding pre-market and during day trading on Monday, April 15.
This sentiment is compounded by expectations of underwhelming quarterly results following Tesla’s first-quarter delivery miss. Additionally, Tesla’s recent decision to slash the subscription price for its full self-driving software to $99 per month, has added to the uncertainty.
Tesla Stock Technical Setup Ahead Of Q1 Earnings Tesla stock’s technical indicators reveal a strongly bearish trend.
Chart: Benzinga Pro
The stock’s price sits below its 5-, 20-, and 50-day simple moving averages, indicating significant selling pressure and potential future bearish movement. The 8-day simple moving average signals a bearish sentiment as well, mirroring sentiments across the 20-day and 50-day SMAs. Moreover, Tesla’s price is way below its 200-day simple moving average, reinforcing the bearish momentum.
Chart: Benzinga Pro
The Moving Average Convergence Divergence (MACD) indicator stands at -3.45, further supporting the bear case. Additionally, the Relative Strength Index (RSI), at 40.52, suggests Tesla stock is oversold.
Over the past few months, Tesla stock can be seen trading the lower of the Bollinger Bands indicating an ongoing bearish sentiment for both short-term and long-term trends.
With Tesla’s first quarter 2024 earnings report just eight days away, investors brace for potential volatility amidst the current technical outlook and layoff news.
Tesla’s stock faces challenges amid layoffs and apprehensions about its upcoming earnings report. Technical signals indicate a strongly bearish trend, underscoring the need for cautious evaluation and risk management strategies.
As Tesla navigates through this period of uncertainty, investors should closely monitor developments and consider the implications for their investment decisions.
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