Tesla stock slides below $400 pre-market amid tech sell-off
Tesla stock fell below $400 in pre-market trading, extending a recent slide driven by broader tech sell-off and weak EV demand. Shares dropped 6% after falling to $402 in Thursday’s session. Analysts cut earnings forecasts, citing soft demand in China and Europe. Tesla stock faces further pressure as costly projects like Robotaxi and Optimus remain unprofitable. Additional drag comes from ARKK’s ongoing share sales. The S&P 500, Nasdaq, and Russell 2000 all broke key support levels, signaling widespread technical sell signals across growth assets.
Bearish
Tesla’s pre-market slump below $400 underscores a broader risk-off sentiment in growth sectors. As a leading tech and EV stock, its decline often fuels caution among investors across asset classes, including cryptocurrencies. Historical tech sell-offs—such as the late-2021 drawdown—have coincided with Bitcoin and altcoin declines of 10-15%. In the short term, intensified selling pressure may trigger crypto market pullbacks as traders reduce risk exposure. Over the long term, fundamental factors in crypto remain intact, but market recovery may lag until overall equity sentiment stabilizes.