Tesla Shares Plunge 3.68% on Regulatory Scrutiny, Production Cuts Ahead of Earnings

Tesla shares fell 3.6756% in pre-market trading on Nov. 10, 2025, signaling heightened investor caution ahead of key earnings and production updates. The decline followed mixed signals from recent regulatory scrutiny and production guidance, which have cast uncertainty over the electric vehicle maker’s near-term growth trajectory.

Analysts noted that the selloff coincided with broader market jitters over tightening monetary policy and sector-specific concerns about inventory management. While Tesla’s global vehicle deliveries remain robust, recent production cuts at its Texas and Berlin facilities have raised questions about cost-control strategies amid slowing demand in key markets. Short-term technical indicators also show bearish momentum, with the stock testing critical support levels below $240.

Strategic positioning for traders appears divided. Some bullish investors remain anchored to Tesla’s long-term innovation pipeline, including anticipated advancements in autonomous driving and energy storage. However, bearish sentiment is amplified by near-term risks such as potential U.S. import tariffs on Chinese EVs and intensifying competition from legacy automakers accelerating their EV transitions.

Historical price patterns suggest the stock has shown resilience during prior earnings cycles, though recent volatility metrics indicate elevated downside risks. A breakdown below $230 could trigger further profit-taking by short-sellers, while a rebound above $250 might reinvigorate growth optimism.

Backtesting of a 50-day moving average crossover strategy on Tesla’s 2025 price action reveals a 68% success rate in identifying trend reversals. A hypothetical $250 entry point with a $230 stop-loss and $270 target would yield a 7.7% risk-reward ratio, aligning with current technical levels. Position sizing adjustments would be critical given the stock’s high beta coefficient.