Tesla Faces ‘Falling Comet’ Risk As Musk-Trump Dispute Fuels Volatility: SEBI RA Rajneesh Sharma

The analyst flagged critical support levels and advised investors to stay disciplined amid market turbulence.

Tesla Inc. (NASDAQ: TSLA) has declined over 17% this week, in a move SEBI-registered analyst Rajneesh Sharma described as the result of “a volatile convergence” of technical breakdowns, news-driven sentiment, and public feuds between billionaires.

Tesla closed at $284.70 on Thursday, down 14.3% or $47.35 for the day, with after-hours trading showing a modest recovery of 0.7% to $286.9.

Sharma mentioned the spat that took place on June 5 between Elon Musk and Donald Trump regarding the $1.6 trillion spending bill in the U.S. 

Musk voiced concerns about the spending bill's reduction of electric vehicle incentives and preference for fossil fuels, which led Trump to threaten Tesla and SpaceX's federal contracts. 

The interaction escalated in severity as personal attacks emerged alongside memes that rapidly spread online.

Sharma said that while these developments do not directly alter fundamentals, they influence investor sentiment, especially in high-beta stocks like Tesla.

On the technical side, Sharma outlined three key levels: $284–285 as a former support turned resistance, $257–258 as a mid-range cushion, and $214–215 as the last stronghold before Tesla approaches a major trendline. 

He added that a break below $214 could potentially lead to a swift move toward the $180–185 range, calling it the “falling comet” scenario.

Sharma said Tesla’s volatility is expected, but periods like this call for discipline. 

He advised market participants to stick to technicals, track price relative to support zones, and avoid letting online controversy dictate trading decisions.

On Stocktwits, retail sentiment was ‘extremely bearish’ amid ‘extremely high’ message volume.

The stock has declined 24.9% so far in 2025.

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