Market expert warns Tesla stock could crash to $217

Core Viewpoint - Tesla stock is nearing a critical technical inflection point, with $399 identified as a key support level that could determine the stock's stability or lead to a deeper correction [1][2]. Technical Analysis - A decisive break below $399 could expose Tesla stock to lower technical targets at $325, $266, and $217 [2]. - The year-to-date decline of 4.71% is considered modest, especially in light of negative sales forecasts for 2025 and poor vehicle registration figures in Europe [3][5]. - Tesla's stock is currently up 17.88% over the past 12 months, despite challenges faced in the business environment [9]. Market Context - The electric vehicle industry is experiencing a broad slowdown, with significant declines reported by other major companies, such as BYD in China [8]. - Elon Musk's relationship with the Trump administration has negatively impacted sales in Europe and could affect the U.S. market as well [7]. Investor Sentiment - Despite the potential risks, Tesla has managed to avoid catastrophic crashes, indicating a level of resilience in its stock performance [2].