Terafab project launch and weak technicals: Tesla stock slides 3.09%

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Tesla slides 3.09% today to $380

Highlights

Tesla announces the $20–25 billion Terafab project and secures a $4.3 billion LG battery supply deal starting 2027.
Institutional investors adjust positions in Tesla while the stock faces continued broad-based selling pressure.
TSLA trades below key moving averages with bearish momentum signals; likely consolidates between $373 and $386, downside risk prevails short-term.

Institutional reshuffling and major deals as selling persists

Tesla has announced the launch of its Terafab project with an estimated budget of $20–25 billion. The company finalized a $4.3 billion supply agreement with LG Energy Solution for lithium iron phosphate battery cells to be produced at LG's Michigan facility starting in 2027. Recent regulatory filings also noted notable changes in institutional investors’ positions in Tesla, though price action has remained under broader selling pressure.

Broad technical weakness confirmed by momentum and resistance levels

TSLA is trading below the SMA-20 ($402.23), SMA-50 ($417.61), and SMA-200 ($394.07), highlighting steady downward trends in short-, medium-, and long-term timeframes. The Ichimoku Kijun level at $408.88 stands above the current price and serves as immediate resistance. MACD and ADX confirm ongoing negative momentum, while RSI, Stoch RSI, and CCI are all in bearish territory without showing oversold extremes. BBP signals intraday bearish dominance, and the Awesome Oscillator maintains a 'Sell' indication. TSLA opened with a gap down and is holding close to today's low within a $379.90 – $384.18 range, with moderate volatility and pronounced selling tone.

Downside risk dominates as volatility limits upside prospects

In the next five trading days, typical volatility defines an expected range of $373.44 to $385.71. The probability of a price increase is estimated as very low (less than 20%), with a greater likelihood of continued downward movement. The baseline scenario points to TSLA consolidating between $373 and $386, with a bullish breakout above $386 requiring a strong catalyst. A fall below $373 could accelerate downside momentum if support is breached.

Anton Kharitonov, analyst at Traders Union, sees persistent technical weakness in TSLA, as the stock remains below all key moving averages and is dominated by negative momentum signals. He believes fundamental news, including the Terafab project and supply agreement, has done little to lift bearish sentiment or reverse the prevailing downtrend. Base case remains consolidation between $373 and $386, with any breakdown risking accelerated losses. "Unless TSLA reclaims $386 with strong volume, I view rallies as opportunities to reduce risk rather than add exposure."

Previously it was reported that Tesla was experiencing broad-based selling pressure despite advancements in autonomous technology and chip development. The latest developments, including a significant battery supply deal and launch of the Terafab project, reinforce the ongoing downward trend, with sustained negative momentum suggesting traders should monitor for any shift in institutional positioning as a potential catalyst for reversal.

Source of Data: TSLA Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.