Tesla’s stock price fell sharply after its 50-day moving average crossed below the 200-day measure, sparking a bearish signal known as a “death cross.” This indicator has historically been associated with a decline in the underlying asset. The signal comes after shares plummeted by nearly 50% from their mid-December peak.
The recent whiplash in Tesla’s stock price can be attributed to the uncertainty surrounding its electric vehicle sales and growing protests against the brand. Investors’ concerns have mounted, leading to a sharp decline in shares.
This is not the first time Tesla has flashed a death cross, having done so previously in May 2022 during a brutal bear market sell-off sparked by inflation and interest rates. The stock’s price declined by as much as 54% before finding its bottom in January 2023.
It’s essential to note that the moving-average crossover strategy is a lagging indicator, prone to false signals known as head fakes. As technical analyst Ari Wald noted, “not every ‘death cross’ leads to a major decline.” Other notable stocks flashing bearish death crosses include bitcoin and Nvidia, while major indexes such as the S&P 500 and Nasdaq 100 also triggered the signal on Monday.
Source: https://www.businessinsider.com/death-cross-formation-tesla-stock-price-bearish-signal-tariff-volatility-2025-4