Tesla Struggles Below Key Resistance as AI Selloff Hits Sentiment

Tesla (TSLA) came under pressure on Thursday, falling 1.2% to around $418 as weakness across the AI sector offset positive developments in the company's robo-taxi program.

The decline followed a sharp selloff in shares of , which dropped after investors were left disappointed by unchanged long-term AI revenue guidance. Although the chipmaker delivered strong earnings and revenue forecasts, markets had been expecting an even more bullish outlook.

The reaction spilled into other AI-linked stocks, including Tesla, whose valuation is increasingly tied to autonomous driving and artificial intelligence rather than electric vehicles alone.

Meanwhile, Tesla continues to make gradual progress with its robo-taxi business. Reports indicate the company has removed safety monitors from select vehicles operating within a restricted area of Austin, Texas, marking another step toward fully autonomous transportation. However, large-scale deployment remains limited, leaving investors focused on the pace of expansion.

Technical Analysis

On the 4-hour chart, Tesla remains in a corrective phase after failing to break above the $440 region. Price is currently consolidating near $418, suggesting buyers are losing momentum following the strong rally from the $337 low.

The $436-$453 resistance zone remains the key obstacle for bulls. A successful breakout above this area could revive upward momentum and target the $488 region.

On the downside, immediate support sits at $410. A close below this level may increase bearish pressure and open the door toward the $393-$383 support zone. Further weakness could expose $367 and eventually the $337 swing low.

Key Levels

Resistance: $436, $453, $488

Support: $410, $393, $383, $367

Market Outlook

Tesla remains range-bound between major support and resistance levels. While the long-term robo-taxi narrative continues to attract investor interest, short-term momentum has weakened. Traders will be watching closely for either a breakout above $436 or a breakdown below $410 to determine the stock's next directional move.

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