Tesla Stock Eyes $200 Crash After Major Support Loss

Tesla is facing serious downward pressure after losing a crucial support level on its charts. Market analysts point out that shares recently broke below the mid range floor near $360, following a harsh post earnings sell off. With the stock currently trading around $313 and sitting down roughly 30 percent for the year, traders are keeping a close eye on the $280 mark as the next immediate danger zone.

If the current selling momentum continues, experts warn that the stock could slide all the way down to the channel bottom near $200. That would translate to an additional 36 percent decline from current prices, and nearly a 60 percent drop from the 52 week high of $498.83. On the upside, any recovery attempt will likely face stiff resistance around the $360 and $485 levels.

The bearish turn follows a second quarter earnings report that disappointed Wall Street. Even though revenue climbed 26 percent to $28.24 billion and deliveries hit a record 480,126 units, profit margins shrank significantly. Adjusted earnings per share missed expectations, and free cash flow dropped into negative territory as capital spending surged for artificial intelligence and robotaxi projects.

Despite the short term pain, long term bulls are focusing on Tesla's growing artificial intelligence ambitions, expanding robotaxi fleets, and rising subscriptions for full self driving software. Investors now have to decide whether heavy spending on future technology outweighs current financial pressures. Watch the $280 support level closely in the coming days to see where the stock heads next.