Tesla Stock Price and Forecast: Will TSLA stock crash on Tuesday?

Tesla stock performed well on Friday, rallying by 1.75%.
Tuesday is likely to see TSLA shares fall sharply.
Tesla had some negative weekend press, yields are moving higher.

Ivan Brian FXStreet

So begins the shortened week due to yesterday's Martin Luther King, Jr. holiday, but it may be no less dramatic. Already it is looking like stocks will be under pressure as yields again rise, and investors begin to nervously adjust their portfolios. Friday has seen some calm descend on markets with the NASDAQ outperforming, which helped Tesla to a solid 1.75% gain, closing at $1,049.61. However, things are about to get ugly on Tuesday. European markets are already in the red, and an early gauge of the futures markets shows the NASDAQ indicating it is headed down nearly 2% and plummeting by 260 points.

Tesla Stock News

The Wall Street Journal reported over the weekend that a Tesla lawyer asked a law firm it uses, Cooley LLP, to fire an attorney. The attorney in question had previously worked for the SEC and had interviewed Elon Musk and been involved in the SEC probe into Elon Musk. The probe was back in 2018 and surrounded Elon Musk's claim that he had secured funding to take Tesla private. It remains to be seen if this hangs over the stock on Tuesday. The extra day may mean that the story fades from investor attention. However, the stock is going to struggle on Tuesday either way, and added to this is the continued selling from Cathie Wood of ARK Invest.

Tesla Stock Forecast

The chart is not clear on Tesla. We have a medium, long-term uptrend, but just recently things have started to look more bearish. The short-term downtrend is highlighted with a series of lower highs and lows. The most recent low at $980 is our pivot point. Above here the risk reward is skewed to more short-term gains, but below it opens up a target of $886. We feel this will likely be tested on Tuesday.

While $980 is the short-term pivot, $886 is the medium-term pivot point. A break brings the important 200-day moving average at $804 into view. TSLA has not been trading below its 200-day moving average since back in August of last year.

Tesla (TSLA) chart, daily

Like this article? Help us with some feedback by answering this survey:

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

GBP/USD flirts with weekly highs in the Fed's aftermath

GBP/USD reversed early losses following the Federal Reserve decision to keep rates on hold and neared the 1.3360 level before shedding some ground. Focus shifts to Governor Kevin Warsh's speech, while the Bank of England will announce its monetary policy decision on Thursday.

EUR/USD extends rally pass 1.1450 on Fed's Warsh

EUR/USD trades at fresh weekly highs above 1.1450, following the Federal Reserve monetary policy decision to keep interest rates on hold. The statement showed policymakers remain confident in economic progress while blaming inflation on energy prices. The divided vote among officials put in doubt a September hike, leading to sharp US Dollar losses.

Gold hovers around $4,100 as Fed decision hits the USD

Gold surged following the Federal Reserve's decision to keep the benchmark interest rate unchanged at 3.50%-3.75%. Policymakers noted that inflation remains elevated and that economic activity is expanding at a solid pace despite elevated uncertainty, spurring doubts about a rate hike in September. XAU/USD peaked above $4,100, now battling to retain the level.

No soft target: Warsh vows to return inflation to 2%

The Fed left interest rates unchanged at 3.50%-3.75%, but the decision carried a distinctly hawkish edge as three officials voted for an immediate 25-basis-point increase. Chair Kevin Warsh reinforced that message, insisting there was no tolerance for a softer inflation target and warning that the Fed would not hesitate to act.

How the CLARITY Act unlocks Wall Street’s tokenization pipeline

The United States (US) Digital Asset Market Clarity Act (CLARITY Act), awaiting a full Senate floor vote, promises to unlock Wall Street’s potential to tokenize financial assets, including equities, US Treasuries, private credit, real estate and commodities at a scale that could supercharge the real-world asset (RWA) market from the current $17 billion level to $5.5 trillion by 2030, according to

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.