Key Takeaways
- Tesla shares dropped below $400 in pre-market trading amid tech sector selling pressure.
- Analysts attribute the decline to weak EV demand and lowered earnings estimates for Tesla.
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Tesla shares dropped to $383 in pre-market trading, extending losses after a bruising session for tech stocks, according to Yahoo Finance data. The stock fell more than 6% on Thursday to about $402 and kept sliding in after-hours trading.
Stocks sold off on Thursday as the S&P 500, Nasdaq, and Russell 2000 all broke below key support levels.
Tesla, Palantir, Broadcom, and Nvidia led the declines, with several major tech names slicing through the 50-day line. The action triggered widespread technical sell signals across growth stocks.
According to Gary Black of The Future Fund, an SEC-registered investment advisor, Tesla’s decline reflects lowered earnings forecasts as analysts respond to soft EV demand in China and Europe.
He also pointed out that Robotaxi and Optimus won’t boost profits anytime soon, and ARKK’s ongoing selling is creating additional drag.