Key Takeaways

• Tesla shares tumbled again Tuesday, putting the EV maker's stock on pace to lose ground for the ninth consecutive week.

• The stock staged a minor bounce from the lower trendline of a descending broadening formation but has since failed to gain upside traction.

• Investors should watch major support levels on Tesla's chart around $190 and $140, while also eyeing key resistance levels near $265 and $360.

Tesla (TSLA) shares fell sharply again Tuesday, putting the EV maker's stock on pace to lose ground for the ninth consecutive week.

The shares have faced intensifying selling pressure in recent weeks amid mounting investor concerns that CEO Elon Musk’s extensive involvement in the Trump administration could dent the Tesla brand and sales.  A fresh set of headlines may have weighed on the stock today, with Chinese EV maker BYD unveiling an ultra-fast charger and some Wall Street analysts offering up skeptical takes on Tesla stock.

Tesla shares, which rallied sharply after November’s election on expectations that the company would benefit from Musk’s close ties with President Trump, have given back all those gains. The stock has fallen 53% from the all-time high it set on Dec. 17.

Below, we analyze the technicals on Tesla’s chart and point out major price levels that investors may be tracking during the stock’s ongoing correction.

Source: TradingView.com.

Descending Broadening Formation

After topping out in mid-December, Tesla shares have trended lower within a descending broadening formation, with the price tagging the patten’s upper and lower trendlines on several occasions since that time.

More recently, the stock staged a minor bounce from the formation's lower trendline but has since failed to gain upside traction.

In a minor win for Tesla bulls, the relative strength index (RSI) recently broke above a downtrend line stretching back to its December high, potentially signaling an early shift in price momentum, though the indicator remains near oversold levels.

Let’s turn to the EV maker’s chart to spot major support and resistance levels worth monitoring.

Major Support Levels to Watch

Tesla shares fell 5.3% to close Tuesday's session at $225.31.

The first lower level to watch sits around $190. The shares could find buying interest in this area near a horizontal line that connects a range of peaks on the chart between April and June, with this region also closely aligning with the early-August trough.

Selling below this level opens the door for the shares sliding to lower support at the $140 level. Bargain hunters could look to accumulates shares in this location neat the stock’s prominent 2024 low set last April.

Key Resistance Levels to Eye

Upon a move higher, investors should initially watch the $265 level. The price could encounter selling pressure in this area near peaks that developed on the chart in July, September and October last year. 

Finally, a decisive close above this level could drive a move up to around $360. Investors may look to offload Tesla shares in this region near November’s twin peaks and last month’s countertrend high. This area also sits in close proximity the 50% Fibonacci retracement level, when stretching a grid from the December high to March low.