- Tesla issues new software recall for taillight glitch.
- The software update affects 321,628 vehicles.
- TSLA stock drops below March 2021 low of $179.83.
Tesla (TSLA) stock is down 2.2% in Monday's premarket after announcing another recall. This one affects 321,628 Model Y and Model 3 vehicles with model years between 2020 and 2023 that have issues with taillights failing to illuminate. The issue is not a physical recall where Teslas are brought back to mechanics to be fixed but rather involves software-based updates.
Tesla stock news
This is actually the 19th recall for Tesla in 2022, but the vast majority of them have been simple "over-the-air" software updates. The recall, carried out on November 19, was also the fourth of the month. Still, it is not a good headline when Tesla stock has fallen 55% year to date and nearly 19% in the past month.
Much of the recent head-hanging by Tesla investors is due to CEO Elon Musk very publically taking over day-to-day leadership at Twitter. The vast majority of Musk's tweets on the social media platform and many of his photos have been updates about Twitter's new corporate strategy. This has left the market feeling as if Tesla is running on autopilot not long after the EV maker has seen demand drop in China and missed delivery forecasts.
According to data from the National Highway Traffic Safety Administration, about 23 million vehicles have been recalled in the United States so far in 2022. Close to 4 million of those have been Teslas.
Tesla stock forecast
The drop in the share price has sent Tesla stock below the March 2021 low at $179.83. This $180 support level was key and held up on several occasions in 2020.
Moving below $180 bodes poorly for Tesla bulls at the moment, because it means the next area of support is down at $167.50. That price level served as both support and resistance in November 2020 and as strictly resistance in August 2020. Below there sits the $154 resistance level from the autumn of 2020.
The weekly Moving Average Convergence Divergence (MACD) indicator also seems in freefall and does not appear close to a bullish crossover. Without a bullish catalyst appearing in the headlines this week, expect Tesla stock to drop to one of the support levels mentioned, both of which are better entry points than the current price near $175.
TSLA 1-day stock chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays defensive near 1.1350 as US Dollar looks to stabilize
EUR/USD remains on the back foot for the second consecutive session, trading near 1.1350 in the European trading hours on Tuesday. The pair weakens as the US Dollar attempts to regain stability amid the US-China trade war and growing concerns over US recession. German/ EU data are awaited.
GBP/USD battles 1.3200 after UK jobs data
GBP/USD is defending minor bids near the 1.3200 mark in the early European session on Tuesday. The latest data from the UK showed that Unemployment Rate steadied at 4% in the quarter to February while Average Earnings disappointed, weighing negatively on the Pound Sterling.
Gold price retains its positive bias above $3,200 amid US-China trade war, bearish USD
Gold price regains positive traction as US tariff uncertainty continues to underpin safe-haven assets. Bets for aggressive Fed rate cuts in 2025 keep the USD depressed and also benefit the XAU/USD pair.
XRP resilient amid looming ETF deadlines
Ripple (XRP) flaunted a bullish outlook, trading at $2.1505 at the time of writing on Tuesday. Investor risk appetite has continued to grow since the middle of last week, propping XRP for a sustainable upward move, eyeing $3.0000 psychological level.
Is a recession looming?
Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.