TSLA Stock Falls Below 100-DMA For First Time In Over Six Months – Retail Expects Shares To Hit $400 Mark Soon

• Broader markets edged lower on Tuesday after Trump warned of tariffs on NATO members opposing the ‘complete and total purchase of Greenland’.
• TSLA stock was the second biggest laggard among the ‘Mag 7’ companies.
• 2026 is a crucial year for Tesla to showcase significant advancements in full self-driving and robotaxi services, Wolfe Research said last week.

Tesla (TSLA) shares fell 2.8% on Tuesday, slipping below their 100-day moving average (100-DMA) for the first time since July 9, 2025, amid a broader sell off in equities.

Source: TradingView

Stocks declined on Tuesday morning as investors reacted to rising trade tensions following former President Trump's warning on Saturday that countries opposing his Greenland plan could face new tariffs. He stated that imports from eight NATO members would face 10% tariffs starting February 1, rising to 25% by June unless a deal is reached for the “complete and total purchase of Greenland.”

Tuesday marked the first full trading session as markets were closed on Monday for Martin Luther King Jr. Day.

The SPDR S&P 500 ETF Trust (SPY) was down 1.5%, the Invesco QQQ Trust (QQQ) fell 1.6%, and the SPDR Dow Jones Industrial Average ETF Trust (DIA) slid 1.4% at the time of writing.

TSLA shares were the second biggest laggard among the ‘Magnificent 7’ stocks, after NVDIA, which was down 3%. The Roundhill Magnificent Seven ETF (MAGS) was down 1.9%.

What Are Analysts Saying?

Last week, Wolfe Research said in a research note that Tesla faces a difficult fundamental setup in 2026, but shares could still perform despite lower near-term estimates if execution improves.

The company views 2026 as a crucial year to showcase significant advancements in full self-driving and robotaxi services, including removing safety drivers, entering new markets, and enhancing service quality, all while facing growing competition from AI-focused rivals. It has a ‘Peer Perform’ rating on the shares.

Last Wednesday, UBS raised Tesla’s price target to $307 from $247 but maintained a ‘Sell’ rating, citing caution ahead of its fourth-quarter (Q4) earnings on January 28.

Retail sentiment for TSLA on Stocktwits remained in the ‘bearish’ territory over the past 24 hours, with users expecting the stock to fall to near $400 soon. It is currently trading at around $427.

FSD Update

Tesla’s Full Self-Driving (FSD) has been at the center of attention lately. Last week, Tesla CEO Elon Musk said the company will stop selling FSD as a standalone package starting next month, with the service only available via a $99-per-month subscription, replacing the current $8,000 one-time purchase.

Separately, the U.S. National Highway Traffic Safety Administration (NHTSA) has given Tesla until Feb. 23, 2026, to review 8,313 potential traffic violations involving its vehicles. The extension provides more time to report findings from incidents where the FSD system was in use.

Tesla’s deliveries declined in the fourth quarter (Q4) and full year 2025, marking a second straight annual decline. Q4 deliveries fell about 16% year-over-year, while production declined 5.5% from the prior year. Full-year deliveries dropped 8.6% to 1.64 million amid intensified competition from rivals including BYD, Kia, Hyundai, and Volkswagen.

TSLA shares have fallen 1.6% over the past year and more than 7% so far this year. 

Read also: Why NVAX Stock Is Popping Pre-Market – And What Does Pfizer Have To Do With It?

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