Tesla stock was among major losers on Friday as overall markets witnessed selling pressure. Investors dumped Tesla stock, dragging it down by 10.4 percent. Tesla has lost nearly 50 percent of its valuation at yearly highs. Tesla touched an intraday low at $236, compared to its recently touched 52-week highs at $488.54. Tesla has been a highly volatile stock and Elon Musk has been in the news as he took a role at DOGE. Musk has faced criticism for his actions at DOGE and Tesla has witnessed lower sales of its electric vehicles. Investors are concerned about Musk's actions that have led to heavy criticism. And, drop in sales in another major issue for Tesla investors.

Tesla Incorporated (NASDAQ: TSLA) continues to command headlines as the electric vehicle pioneer juggles innovation, regulation, and investor expectations. Tesla closed close to its day's low on Friday. The stock witnessed wild swings between $236 and $261, indicating strong investor concerns about the EV pioneer. The stock has seen heightened volatility after retreating from its 52-week high of $488.54 and the slide has been quick. Majority of investors might have missed the chance to exit the stock and now it seems too late. However, Tesla could see further drop. With the stock trading closer to the lower third of its 52-week range, risk-reward appears balanced but hinges heavily on technical and macro developments.

Wedbush Cuts Tesla Price Target by 43%, Citing Brand Fallout Amid Political Headwinds

One of Tesla Inc.’s most prominent Wall Street backers has sharply lowered his price target for the electric vehicle giant, citing growing reputational and geopolitical risks tied to CEO Elon Musk and the Biden administration’s trade tensions with China.

In a client note issued recently, Daniel Ives of Wedbush Securities—a long-time bull on Tesla—slashed his 12-month price target from $550 to $315, representing a 43% downgrade. Ives has maintained a "Buy" rating on the stock for the past four years, often touting Tesla’s innovation, market dominance, and leadership in the EV space.

But in his latest analysis, Ives expressed concern that Tesla is now increasingly viewed as a political lightning rod—a shift that may be alienating global consumers and drawing unwanted attention from regulators abroad.

“Tesla has essentially become a political symbol globally,” Ives wrote, referencing the brand’s growing association with divisive political narratives. “It is time for Musk to step up, read the room, and be a leader in this time of uncertainty.”

The revision comes amid heightened scrutiny over U.S. trade policy, particularly tariffs on Chinese electric vehicles and clean energy components. Tesla generated more than 20% of its total revenue from China last year, making the automaker especially vulnerable to retaliation or changing consumer sentiment in that critical market.

Ives cautioned that Tesla’s China exposure, once seen as a strength, could now become a liability if nationalistic sentiment turns against U.S. firms. His comments reflect a broader market concern that Tesla’s brand identity—long synonymous with cutting-edge tech and clean energy—has become increasingly intertwined with Musk’s personal image and political commentary.

Candlestick Analysis: Signals Mixed Near Resistance

Daily charts indicate that Tesla has formed multiple spinning top and doji candlesticks in the past five sessions, highlighting indecision. These patterns, especially after a brief uptrend, could signal either:

Consolidation before a breakout above $261, or

Potential correction back toward the $245–$236 range

Traders should note the lack of a bullish engulfing or marubozu candle that would confirm trend continuation.

Support and Resistance: A Tight Trading Box

Tesla is currently squeezed between strong support at $236 and resistance at $261—a channel that has held firm for the last three weeks.

Immediate Support: $245.50

Major Support: $236.00

Short-Term Resistance: $255.10

Breakout Trigger: $261.00

A breakout above $261 could trigger momentum toward the next psychological level of $275, while a failure to hold $236 may open the doors to a retest of $220.