Insights 
VT 
Tesla shares suffered a dramatic breakdown on the charts, with the decline reflecting more than just headlines — 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.
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’s 2024 campaign success. Musk also hinted at retaliatory measures involving his business interests, including NASA-affiliated operations at SpaceX.
While analysts at Wedbush described the market reaction as “driven by emotion but not irrational,” they emphasised that federal contracts tied to SpaceX and Tesla’s energy division represent significant long-term revenue. If political tensions lead to policy shifts, the underlying business risks could increase substantially.
Technical Analysis
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.
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–$310 range, and unless buying volume returns decisively, TSLA may remain vulnerable to further downside.
Cautious Outlook
The next 48 hours could define the trajectory of this feud — and Tesla’s recovery. A cooling of rhetoric may 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.
