Tesla Slides 4% on Layoff Plans, Earnings Fluctuations: Stock Chart Shows Strong Downtrend – Tesla (NASDAQ:TSLA)

Tesla, Inc. (NASDAQ:TSLA) saw its shares fall 4% in Monday afternoon trading following potential layoffs of more than 10%.

Despite a positive outlook for major index futures, Tesla's premarket trading also reflected a significant downtrend, highlighting the market's concerns.

Related Link: Why Tesla Stock Is Slipping Ahead of Today's Open Bell

Rumors are circulating about possible layoffs, potentially affecting up to 20% of Tesla's workforce. The news added to investor uncertainty and caused Tesla shares to slide premarket and during day trading on Monday, April 15.

This sentiment is reinforced by expectations of disappointing quarterly results following Tesla's first quarter delivery failure. Additionally, Tesla's recent decision to reduce the subscription price for its full self-driving software to $99 per month has added to the uncertainty.

Tesla stock technical indicators show a sharp bearish trend.

Chart: Benzinga Pro

The stock price is below its 5-day, 20-day and 50-day simple moving averages, indicating significant selling pressure and a possible future downward move. The 8-day simple moving average also signals bearish sentiment, reflecting sentiment at the 20-day and 50-day SMAs. Additionally, Tesla's price is well below its 200-day simple moving average, reinforcing bearish momentum.

Chart: Benzinga Pro

The Moving Average Convergence Divergence (MACD) indicator is at -3.45, further supporting the bearish trend. Additionally, the Relative Strength Index (RSI) of 40.52 suggests that Tesla stock is oversold.

Over the past few months, Tesla stock has been seen trading at the lower end of the Bollinger Bands, indicating continued bearish sentiment on both short-term and long-term trends.

With Tesla's first quarter 2024 earnings report just eight days away, investors are bracing for potential volatility given the current technical outlook and layoff news.

Tesla stock faces challenges amid layoffs and concerns about its upcoming earnings report. Technical signals indicate a strong bearish trend and highlight the need for cautious valuation and risk management strategies.

As Tesla navigates this period of uncertainty, investors should closely monitor developments and consider the impact on their investment decisions.

Read more: Elon Musk's top deputy made 'difficult decision to leave Tesla' as electric vehicle maker said it would lay off over 14,000 workers: 'I have no concrete plans'