Tesla shares fall 5.81% following Cybertruck FSD policy change
Tesla Inc shares dropped 5.81% to $385.14 on Tuesday due to a revised FSD transfer policy for the Cybertruck AWD and technical weakness. The stock is trading below key SMAs, and investors are cautious ahead of the May CPI report.
*this image is generated using AI for illustrative purposes only.
Tesla Inc shares fell 5.81% to $385.14 on Tuesday, pressured by a policy change regarding the Full Self-Driving (FSD) feature for its $59,000 Cybertruck All-Wheel Drive (AWD) model. The decline extends recent technical weakness, with the stock trading below critical moving averages as broader market sentiment shifts ahead of economic data releases.
Cybertruck FSD Policy Revision
Tesla updated its terms to state that FSD transfers will not be allowed for the Cybertruck AWD configuration. Earlier in the year, the company had indicated that customers "may qualify" to transfer an existing FSD purchase to the new truck, provided orders were placed before March 31, 2026. The removal of this transfer option has reportedly led to cancellations from buyers who had relied on the original policy.
Tesla delivery advisors presented affected customers with three options: proceed with the order without the FSD transfer, upgrade to a Premium or Cyberbeast trim to request a transfer, or cancel the order and receive a refund of the $250 reservation fee. For buyers who purchased FSD outright on a previous vehicle, the inability to transfer the software prior to delivery represents a significant change in value proposition. With the transfer option removed, the only remaining access path for AWD buyers is a $99-per-month FSD subscription.
Technical Indicators Signal Weakness
The stock is facing technical resistance, trading 8.4% below its 20-day Simple Moving Average (SMA) and 6.1% below its 200-day SMA. Despite a 12-month gain of 26.40%, the price action remains below the 50-day SMA by 1.7% and the 100-day SMA by 3.4%. This positioning suggests that recent rebounds were relief rallies rather than the start of a sustained upward trend.
Momentum indicators reflect a neutral stance, with the Relative Strength Index (RSI) at 48.03. The market is currently testing whether the recent pullback is a routine correction or the beginning of a deeper retest of demand levels. A "death cross" formation observed in April continues to cap rallies until the price can stabilize above longer-term averages.
| Metric | Value |
|---|---|
| 12-month Gain | 26.40% |
| Below 20-day SMA | 8.4% |
| Below 200-day SMA | 6.1% |
| Below 50-day SMA | 1.7% |
| Below 100-day SMA | 3.4% |
| RSI | 48.03 |
| Key Resistance | $453.00 |
| Key Support | $364.00 |
Market Headwinds and Inflation Watch
Broader market pressure contributed to the decline as investors rotated out of high-beta growth names ahead of the May Consumer Price Index (CPI) print. With April CPI running at 3.8% year-over-year, markets are anticipating another elevated reading that could delay expectations for Federal Reserve rate cuts. This macroeconomic environment typically impacts momentum stocks like Tesla, which are sensitive to interest rate sentiment and consumer spending outlooks.
How will the removal of the FSD transfer option impact Cybertruck delivery volumes and order backlog in the upcoming quarter?
Will Tesla face reputational damage or legal challenges from customers who relied on the initial FSD transfer policy?
Can Tesla's stock price stabilize above the $364 support level if the upcoming CPI print triggers further market volatility?
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