Why is Tesla stock down today?

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Tesla slides 2.18% today to $377

Highlights

Tesla is building two new chip factories at its Austin hub with SpaceX to scale its Terafab and Optimus robot ambitions.
European sales fell sharply in January 2026 amid negative sentiment toward Elon Musk, pushing options traders toward protective puts.
Tesla trades under key moving averages with technical indicators pointing to a persistent bearish trend and a likely range of $373.53 to $384.02.

Protective options demand rises as European sales and sentiment decline

Tesla announced plans to construct two new chip factories at its Austin, Texas facility as part of the Terafab project in partnership with SpaceX. Efforts to increase production of the Optimus humanoid robot have also advanced, with over 100 related job openings and new facilities established to support anticipated future growth. European sales have recorded a significant decline in January 2026, partly attributed to negative sentiment toward Elon Musk, and TSLA options demand has shifted toward protective puts, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, notes that Tesla shows persistent bearish momentum on all timeframes, with the stock under key moving averages. He sees that technical indicators like MACD, ADX, and AO reinforce the downside bias, while weak support levels offer little cushion against further declines. Fundamental concerns are mounting as negative news flow — including declining European sales and increased demand for protective puts — undermines investor sentiment. The Terafab chip factory news has failed to offset broad skepticism, which is reflected in steady selling pressure. "Given the lack of reliable support and bearish technicals, I remain cautious and do not see near-term signs of recovery for Tesla," Kharitonov says.

Viktoras Karapetjanc, expert at Traders Union, views the Terafab project and expansion of the Optimus robot line as strong long-term catalysts. He believes these innovations could spark renewed institutional engagement and lift sentiment over time. Macro headlines around new facilities and ambitious production targets highlight Tesla's lasting growth potential. Karapetjanc states, "Despite current bearish moves, the company's strategic investments point to further growth and multiple bullish setups ahead."

Momentum weakens further as resistance holds and sellers dominate

Tesla is trading well below its 20-day ($394.62), 50-day ($411.69), and 200-day ($395.56) simple moving averages, indicating downside pressure across short-, medium-, and long-term horizons. The nearest dynamic resistance is at the Ichimoku Kijun level of $392.45, while support is undefined but implied just below current levels.

Momentum remains weak, with both the Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX) generating sell signals. The Relative Strength Index (RSI), Commodity Channel Index (CCI), and Stochastic RSI present mild to neutral oversold readings on intraday timeframes that contrast with their neutral to bearish daily signals. Bull/Bear Power (BBP) shows that sellers dominate intraday, with a pronounced overbought forecast for the daily interval, reinforcing current seller strength. The Awesome Oscillator (AO) also supports the prevailing bearish trend. Tesla is currently down 2.18% at $377.37 after a downside gap of about $3.78 from the previous close, trading near the low of its daily range as intraday volatility stands at 1.97%. The intraday tone remains decidedly bearish, with notable downward pressure following the open. Most momentum and oscillator readings confirm the negative daily move, with only mild divergences from oversold signals on smaller timeframes.

Earlier, analysts noted that Tesla continued to face persistent selling pressure despite strategic initiatives and brief flashes of improving sentiment. With the latest technical and sentiment data reinforcing that downside risks remain elevated, traders should closely monitor the $373.53 support level as a break below it could accelerate further declines in the days ahead.

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

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