Is Tesla going to be bullish or bearish July 1 2025
7/1/2025 11:42pm
**Tesla's stock (TSLA) was likely to be bearish on July 1, 2025**, based on several indicators suggesting a negative outlook. Here's the analysis to support this conclusion:
1. **JPMorgan's Downgrade**: JPMorgan had recently reaffirmed its 'Underweight' rating on Tesla and lowered its price target to $115 per share, which represented a 63% decrease from current levels. This significant downgrade reflected a bearish sentiment and could influence the stock's performance.
2. **Demand Trends**: Tesla was facing deteriorating demand trends, with soft sales in China and Europe contributing to the revised forecast. This decline in demand was a key indicator of potential bearishness.
3. **Support and Resistance Levels**: Tesla's stock was currently between narrow support and narrow resistance levels, which was a neutral indicator. However, the forecast advised holding the stock, with a historical win rate of 53.5% for this type of forecast. This suggested that while there was uncertainty, the bearish trend had enough momentum to potentially continue.
4. **Recent Performance**: Tesla's stock had experienced a decline, with a 1.8% drop on June 30, 2025, and a further 4.5% drop in the pre-market session on July 1, 2025. This recent weakness was a bearish signal for future prices.
5. **Analyst Sentiment**: The overall sentiment among analysts was cautious, with mixed predictions and a focus on potential downsides. While there were positive developments, such as Benchmark analyst Mickey Legg raising Tesla's price target to $475, this was still below some recent highs, and the analyst maintained a "Buy" rating, which suggested a more neutral to bullish outlook. However, the more bearish sentiment from JPMorgan and the recent stock price declines suggested that the bearish trend could dominate.
In conclusion, based on JPMorgan's downgrade, the deteriorating demand trends, the current support and resistance levels, recent stock price declines, and the overall analyst sentiment, Tesla's stock was likely to be bearish on July 1, 2025. However, investors should monitor the stock's performance in light of any new developments or changes in market sentiment.