Tesla Inc shares fell 1.30% to $389.33 on Thursday, extending recent declines despite preliminary findings from federal investigators that largely cleared the company's Full Self-Driving system of responsibility in a fatal Texas crash. The National Transportation Safety Board (NTSB) published its initial findings on Wednesday regarding a June 19 collision in Katy, Texas. The investigation concluded that the 44-year-old driver, Michael Butler, had disengaged the system by pressing the accelerator pedal to 100%, causing the vehicle to surge beyond the system's permitted speed limits.

The crash involved a 2025 Tesla Model 3 that struck a home at speeds exceeding 70 miles per hour in a zone with a posted limit of 30 miles per hour. Martha Avila, a 76-year-old resident of the home, sustained fatal injuries and died at a nearby hospital. The NTSB's findings support Tesla's argument that the incident resulted from human intervention rather than technological failure, echoing prior public statements by Ashok Elluswamy, Tesla's vice president of AI software.

Technical Indicators Signal Bearish Trend

Despite the positive regulatory news, Tesla stock faces downward pressure from a technical perspective. The stock is trading below critical moving averages, which keeps rallies prone to selling. The Relative Strength Index (RSI) currently sits at 45.85, indicating neutral to soft momentum rather than an oversold condition that typically precedes a rebound.

The broader technical backdrop remains bearish following a "death cross" in April, where the 50-day Simple Moving Average (SMA) moved below the 200-day SMA. Analysts suggest that for the trend to shift, bulls need to establish a pattern of higher highs and higher lows. The April swing low and May swing high serve as key reference points for traders monitoring the stock's direction.

Key Support and Resistance Levels

Traders are watching specific price levels for potential entry and exit points. The immediate resistance is identified at $433.00, a round-number zone that could act as overhead supply during any rebounds. Conversely, key support is located at $380.00, a level close to the current trading price where buyers may attempt to defend the stock against further declines.

Wells Fargo analyst Colin Langan has maintained an Underweight rating on Tesla while raising the price target to $130 from $125. The revised target indicates a slight adjustment in the valuation outlook despite the continued negative stance on the stock.

Rating and Price Target

The research note updates the investment recommendation and price objective for Tesla shares. The following table details the changes:

Tesla is listed on the NASDAQ under the ticker symbol TSLA.