Tesla Stock Breaks Down After Worst Week Since 2022, Charts Point to $296

Tesla (TSLA) stock closed last week at $313.03, down nearly 18% in five sessions and its steepest weekly loss since 2022. Two separate chart breakdowns now point to $296 as the next downside target.

The selloff erased the $350 support zone after second-quarter results paired record revenue with a steep profit miss. Early premarket quotes on Monday suggested a modest rebound attempt toward $321.

Earnings Miss Set Off the Slide

Tesla reported $28.24 billion in second-quarter revenue, up 26% year over year and above estimates. However, adjusted earnings of $0.33 per share missed the $0.51 consensus, and operating margin sank to 1.4%.

Capital spending jumped 142% to $5.79 billion as the company funneled cash into artificial intelligence, Optimus robots, and robotaxi production. Free cash flow turned negative for the first time since early 2024.

Some on Wall Street see the reaction as overdone. Wedbush Securities managing director Dan Ives called the capex surge a timing problem rather than a broken thesis, telling CNBC:

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