Tesla shares dropped nearly 3% in the past 24 hours to trade at $358.79, falling below every key short-term moving average. The decline came after JPMorgan cut its price target on the electric automaker, highlighting growing concerns about profitability.
JPMorgan trims Tesla's price target
JPMorgan lowered its price target for Tesla, though the exact new target wasn't specified. The move reflects a cautious view on the company's near-term prospects. Tesla's stock is now trading under its 5-day, 10-day, and 20-day moving averages, a technical signal that short-term momentum has turned negative.
Profitability pressure mounts
Tesla's operating income margin has collapsed to just 1.4%, a stark contraction from previous levels. The thin margin suggests the company is struggling to maintain profitability amid pricing pressures and rising costs. This metric is closely watched by investors as a gauge of core operational efficiency.
Technical levels in focus
With the stock below its short-term moving averages, traders are eyeing the $352 level as a critical support zone. A break below that could trigger further selling, while holding it might signal a temporary floor. The stock's recent weakness puts it at a crossroads, with the next few sessions likely to determine whether the downtrend accelerates.
What to watch
Tesla's ability to defend the $352 level will be key in the coming days. Investors will also look for any updates from the company on margin trends or production figures. For now, the stock remains under pressure, and the JPMorgan target cut adds to the bearish sentiment.
