Usman Salis
Tesla (TSLA) delivered a jaw-dropping 497,099 vehicles in the third quarter, setting a new company record. But instead of celebrating, Wall Street hit the sell button. The stock dropped more than 5% to close at $436, showing how quickly investor sentiment can shift even when the fundamentals look strong. The main culprit? Worries about U.S. EV tax credits going away soon.
Technical Picture Shows Mixed Signals
Trader Stock Ticker ZONE points out that Tesla's chart tells a story of both strength and caution. The stock had a solid September run, climbing above both its 50-day moving average at $361 and its 200-day moving average at $335. That's usually a good sign. But today's action hit a peak of $470 before sellers jumped in and pushed it back down.
The technical indicators are painting an interesting picture. The RSI sits at 62, which means the stock isn't overheated but doesn't have much room to run higher without taking a breather first. The MACD is still in positive territory, suggesting the bulls haven't completely left the building. Still, today's reversal is something short-term traders should pay attention to.
Strong Numbers Meet Policy Headwinds
Those delivery figures prove Tesla's still the king of the EV world. The company keeps ramping up production and expanding globally, which is impressive. But here's the problem: investors are getting nervous about what happens when those federal EV tax credits disappear. It's a classic case of good news getting overshadowed by future uncertainty.
What Traders Are Watching
Here are the levels that matter right now:
- Support at $420 – This is where the stock has been finding buyers recently
- Resistance at $470–$480 – Today's rejection zone that needs to be reclaimed
- Critical support at $335 – The 200-day moving average, a make-or-break level for the long-term trend
If Tesla holds above $420, the uptrend could stay intact heading into the fourth quarter. But if it breaks below $400, we might see a deeper pullback that tests lower support levels.
Usman Salis
