{"id":19239,"date":"2025-06-06T07:02:42","date_gmt":"2025-06-06T07:02:42","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=19239"},"modified":"2025-06-06T07:02:42","modified_gmt":"2025-06-06T07:02:42","slug":"tesla-plunges-following-musk-trump-fallout","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/tesla-plunges-following-musk-trump-fallout\/","title":{"rendered":"Tesla Plunges 14% Following Musk\u2013Trump Fallout"},"content":{"rendered":"\n

Tesla shares suffered a dramatic breakdown on the charts, with the decline reflecting more than just headlines \u2014 markets reacted to the potential for a broader shift in federal backing. The stock slid sharply through every major support level, bottoming at an intraday low of $273.18 and marking its steepest single-day fall since September 2020.<\/p>\n\n\n\n

A public spat between Elon Musk and US President Donald Trump sparked the drop. Trump accused Musk of lacking loyalty and profiting excessively from electric vehicle regulations, prompting Musk to respond by claiming he played a pivotal role in Trump\u2019s 2024 campaign success. Musk also hinted at retaliatory measures involving his business interests, including NASA-affiliated operations at SpaceX.<\/p>\n\n\n\n

While analysts at Wedbush described the market reaction as \u201cdriven by emotion but not irrational,\u201d they emphasised that federal contracts tied to SpaceX and Tesla\u2019s energy division represent significant long-term revenue<\/a>. If political tensions lead to policy shifts, the underlying business risks could increase substantially.<\/p>\n\n\n\n

Technical Analysis<\/h2>\n\n\n\n

Tesla (TSLA) has experienced a sharp decline in recent sessions, dropping over 12% from highs near $324 to lows around $273 before settling near $283. The 15-minute chart reveals strong bearish momentum, as indicated by all three moving averages (MA 5, 10, 30) sloping decisively downward with significant separation between them. This alignment signals sustained selling pressure and a lack of near-term recovery strength.<\/p>\n\n\n

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TSLA tumbles over 12% in a sharp correction, finding short-term support at 273, as seen on the\u00a0VT Markets app.<\/figcaption><\/figure>\n<\/div>\n\n\n

The MACD further supports this bearish outlook, remaining firmly negative with no crossover in sight. The histogram bars continue to print red, underscoring the persistent downward momentum. Price action shows a minor rebound from the $273 level, suggesting this zone may be emerging as short-term support. However, without a clear reversal pattern or bullish divergence on the MACD, the recovery appears weak. Resistance is now expected near the $300\u2013$310 range, and unless buying volume returns decisively, TSLA may remain vulnerable to further downside.<\/p>\n\n\n\n

Cautious Outlook<\/h2>\n\n\n\n

The next 48 hours could define the trajectory of this feud \u2014 and Tesla\u2019s recovery. A\u00a0cooling of rhetoric<\/a>\u00a0may lead to a relief rally, but if the spat worsens and federal contract scrutiny intensifies, further downside pressure cannot be ruled out. Traders should watch for volatility clusters and regulatory responses as this saga unfolds.<\/p>\n\n\n\n

Create your live VT Markets account<\/a> and start trading<\/a> now.<\/strong>

<\/p>\n","protected":false},"excerpt":{"rendered":"

Tesla shares suffered a dramatic breakdown on the charts, with the decline reflecting more than just headlines \u2014 markets reacted to the potential for a broader shift in federal backing. The stock slid sharply through every major support level, bottoming at an intraday low of $273.18 and marking its steepest single-day fall since September 2020. Continue Reading<\/a><\/p>\n","protected":false},"author":92,"featured_media":19243,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[],"class_list":["post-19239","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t