Tesla Stock Is Sliding Tuesday Afternoon: What's Going On?

Tesla Inc (NASDAQ:TSLA) stock is trading lower on Tuesday afternoon as investors weigh the implications of the company’s latest product launches against broader market concerns. Here’s what investors need to know.

Get the details on TSLA stock here.

What To Know: The decline came as the electric vehicle maker officially unveiled its more affordable “Model Y Standard” and “Model 3 Standard” vehicles.

The new Model Y Standard starts at $39,990, a strategic move to attract a wider customer base, especially following the recent expiration of the $7,500 U.S. federal EV tax credit. While a lower-priced vehicle could boost sales volume, the stock’s negative reaction suggests investor anxiety about shrinking profit margins.

What Else: The market could be concerned that the introduction of a cheaper model may cannibalize sales of higher-margin trims. The move could also signal weakening demand in the face of increased competition and a challenging economic environment.

The launch follows strong third-quarter deliveries for Tesla, but sales figures may have been inflated by customers rushing to buy before the tax credit expired, potentially leading to a slowdown in the coming months. Investors will be closely watching Tesla’s upcoming earnings report for further insight into the company’s profitability.

Benzinga Edge Rankings: According to Benzinga Edge stock rankings, while Tesla boasts a strong momentum score of 90.15, it receives a notably weak value score of just 4.21, underscoring investor concerns about its current valuation.

TSLA Price Action: Tesla shares were down 3.97% at $435.24 at the time of publication on Tuesday, according to Benzinga Pro. The stock is trading near its 52-week high of $488.54.

The stock is trading well above its 50-day moving average of $366.40, suggesting a strong uptrend over the medium term, but Tuesday’s drop may indicate a potential pullback.

Key support levels can be observed around the 200-day moving average at $334.41, while resistance is evident near the recent high of $452.68.

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How To Buy TSLA Stock

By now, you’re likely curious about how to participate in the market for Tesla — be it to purchase shares or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Tesla, which is trading at $436.99 at some point on Tuesday, $100 would buy you 0.23 shares of stock.

If you’re looking to bet against a company, the process is more complex. You’ll need access to an options trading platform or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option or sell a call option at a strike price above where shares are currently trading — either way, it allows you to profit from the share price decline.

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