Tesla stock falls 7.3% as cheaper Cybertruck fails to offset China tariff blow
Tesla’s Q1 2025 EV deliveries dropped 8.6% year-over-year to roughly 128,000 vehicles
As of April 11, 2025, Tesla Inc. (NASDAQ: TSLA) is trading at $252.40, reflecting a sharp 7.3% decline in the latest session. This pullback followed an outsized 23% surge the previous day, a level of volatility that highlights market sensitivity to recent developments around the company. Year-to-date, TSLA shares are down nearly 38%, significantly underperforming major indices such as the NASDAQ Composite.
Technically, the stock remains range-bound, with a well-defined support zone between $210 and $220. This area has acted as a floor during the most recent pullbacks, attracting buyers on multiple occasions. On the upside, resistance stands firm near $275, a level Tesla briefly tested before retreating. A sustained breakout above $275 could shift sentiment more bullishly, with room to extend toward the $300 psychological barrier.
TSLA stock price dynamics (February 2025 - April 2025). Source: TradingView.
Tesla’s moving averages offer a mixed signal. The 50-day simple moving average has turned south, indicating bearish short-term momentum, while the 200-day average remains relatively flat, suggesting a lack of trend strength. The Relative Strength Index (RSI) is hovering around 48, indicating neutral territory, neither overbought nor oversold. Recent price swings have been accompanied by elevated volume, confirming strong investor reaction to macro and company-specific headlines.
Cybertruck launch and external pressures
Tesla unveiled a new long-range version of its Cybertruck on April 11, priced at $69,990, making it the most affordable option in the Cybertruck lineup. The launch, reported by AIN.ua and other outlets, is a strategic effort to stimulate demand amid growing skepticism around the vehicle’s pricing and performance. The timing is critical, as Tesla navigates a more competitive EV landscape with intensifying price wars, particularly in North America and China.
However, the company’s efforts to stabilize demand are being challenged by significant external pressures. China, responding to the latest U.S. tariff hikes, imposed a 125% import tariff on certain American goods, including electric vehicles. This led Tesla to suspend orders for its Model S and Model X vehicles in China, cutting off a segment of the market that had historically been a growth driver.
In the U.S., Tesla’s Q1 2025 EV deliveries dropped 8.6% year-over-year to roughly 128,000 vehicles. This decline suggests rising buyer fatigue in the EV space and stronger headwinds from well-funded rivals. Meanwhile, CEO Elon Musk’s increasingly polarizing public image and political involvement have further clouded investor sentiment, with some stakeholders concerned about reputational risk bleeding into brand perception and sales.
Short-term scenarios
Looking ahead, Tesla’s stock performance will largely depend on its ability to hold above the $210–$220 support range. Maintaining this level could open the path for a bounce back to resistance at $275, with a possible extension to $290 if demand for the new Cybertruck variant exceeds expectations or if geopolitical tensions ease.
Conversely, a breakdown below $210 would be a bearish signal, with downside potential toward $180, a key historical level that may attract longer-term investors. The near-term outlook suggests consolidation between $220 and $275 as markets digest recent developments.
Earlier this week, the White House imposed sweeping new tariffs, including a 104% duty on Chinese imports, triggering broad market declines. The move sparked fears of a global slowdown, pressuring Tesla shares amid concerns over supply chain disruption and international sales.
