Tesla Shares Close Below 200-Day Average on Sales Drop

Tesla Inc.'s shares closed below their 200-day moving average on Friday, signaling potential further declines for the electric vehicle maker amid weakening automotive sales and intensifying global competition. The stock ended the day at $391, down nearly 1 percent, and has dropped more than 10 percent year to date, entering bear market territory after a 20 percent retreat from its December peak.

The downturn reflects broader pressures on Tesla's core business. Full-year vehicle deliveries in 2025 totaled about 1.64 million units, a 9 percent decrease from 2024, with fourth-quarter figures falling 16 percent to 418,000 units. Automotive revenue declined 10 percent to roughly $69.5 billion, contributing to a 3 percent drop in overall company revenue to $94.8 billion. Adjusted net income fell 26 percent to $5.9 billion. Analysts attribute part of the weakness to the expiration of U.S. electric vehicle tax credits, which shifted demand earlier in the year, though underlying trends point to softening global demand and rising competition.

In the U.S., Tesla's retail EV sales plunged 26 percent in January, contrasting with growth for five other automakers. Rivals are responding...