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Tesla Stock Price Crashes 10.42% to $239.43 on April 4, Pre-Market April 7 Extends Losses

Tesla Inc. (NASDAQ: TSLA) witnessed one of its steepest single-day declines in recent months, closing 10.42% lower at $239.43 on April 4. The electric vehicle (EV) giant opened the day at $255.38 and briefly touched a high of $261.00, but selling pressure intensified as the day progressed.

Investor fears appear far from over, with pre-market trading on April 7 showing the Tesla stock price down another 6.11%, currently sitting at $224.79 — signaling deeper cracks in the EV market narrative.


Tesla Stock Snapshot: April 4 Close & April 7 Pre-Market

MetricValue
Previous Close$267.28
Open (Apr 4)$255.38
High (Apr 4)$261.00
Low (Apr 4)$236.00
Close (Apr 4)$239.43
Pre-Market (Apr 7)$224.79 (-6.11%)
Market Cap$75.02K Cr
P/E Ratio117.46
52-Week High$488.54
52-Week Low$138.80

What Caused Tesla’s Massive Drop?

1. Weak Q1 Deliveries and Demand Concerns

  • Tesla’s Q1 delivery figures released earlier in the week fell short of expectations.
  • Chinese EV competition (BYD, Nio) continues to pressure Tesla’s margins and volume growth.

2. Valuation Compression

  • With a P/E ratio of 117.46, Tesla remains significantly overvalued compared to legacy automakers.
  • Investors are growing cautious ahead of upcoming earnings, expecting margin pressure due to price cuts.

3. Broader Tech & EV Sector Sell-Off

  • Tesla wasn’t alone — April 4 saw broad declines in tech, especially AI and EV-related stocks.
  • Rising bond yields and macro uncertainty added fuel to the fire.

Expert Takes

“Tesla’s fall is as much about missed expectations as it is about reevaluation of its growth story in a maturing EV market,”
Dan Ives, Wedbush

“The narrative is shifting from exponential growth to margin defense. That’s why institutions are stepping back,”
Craig Irwin, Roth Capital Partners


Tesla vs EV and Tech Peers – April 4 Declines

CompanyPrice% Change
Tesla (TSLA)$239.43-10.42%
Nio (NIO)$4.29-7.2%
Rivian (RIVN)$9.87-6.8%
Lucid (LCID)$2.77-8.5%
Ford (F)$12.19-3.1%

Tesla remains the bellwether for the EV market, and such a sharp drop reverberates across the entire sector.


Technical Breakdown

  • Key Support Broken: $245
  • Next Support Level: $225 (approaching fast in pre-market)
  • Resistance Now: $255–$260 zone

With RSI levels heading toward oversold territory, traders are watching for a possible short-term bounce — but no bullish reversal signal has formed yet.


What’s Next for Tesla?

Upcoming Events:

  • Q1 Earnings Call – Mid-April
  • Investor expectations centered around:
    • Cybertruck delivery updates
    • Profit margins after price wars
    • AI + FSD expansion commentary

Long-Term Risks:

  • Stalling growth in core EV markets
  • China competition and geopolitical exposure
  • Margin erosion amid global price cuts

Tesla Stock Price Faces Growing Pessimism

The Tesla stock price plunge of 10.42% on April 4, followed by a 6.11% slide in April 7 pre-market, highlights the shift in investor sentiment from growth optimism to earnings realism. While Tesla remains a long-term innovator, the short-term outlook is clouded by demand volatility, valuation questions, and sector rotation.

Unless Elon Musk surprises Wall Street with stronger-than-expected financials or breakthrough updates, Tesla may continue to face selling pressure in the sessions ahead.


FAQs

Q1: Why did Tesla stock fall over 10% on April 4?
A: Weak Q1 deliveries, overvaluation fears, and a broader EV/tech market sell-off drove the drop.

Q2: What is Tesla’s current pre-market price on April 7?
A: $224.79, down 6.11% from its last close.

Q3: Is Tesla still above its 52-week low?
A: Yes, but it’s approaching support levels, with the 52-week low at $138.80.

Q4: Will Tesla recover this week?
A: That depends on macro sentiment, sector strength, and any company updates.

Q5: When is Tesla’s next major event?
A: Tesla’s Q1 earnings report is expected mid-April, which could clarify direction.


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