Tesla stock was rising in early trading Tuesday as investors dealt with a new " death cross."
Shares of the electric vehicle maker were up 0.3% in premarket trading at $254.10, while S&P 500 and Dow Jones Industrial Average futures were up 0.3% and 0.2%, respectively.
The early move comes after Tesla's stock chart formed a new death cross on Monday. That's a trading term for when a shorter-term moving average crosses over a longer-term moving average. In this instance, the 50-day moving average is below the 200-day moving average.
The 50-day is about $289 a share. The 200-day is about $291 a share.
For traders, a death cross is a sign that a stock is losing momentum. It can be a bad omen.
Tesla stock, however, is always its own thing. It never does exactly what investors expect, like when it jumped about 90%, or $228 a share, in the 30 trading days after the Nov. 5 presidential election.
Tesla stock last formed a death cross in February 2024. It wasn't that bad. Shares were flat a month later and up 15% six months later. Shares didn't go up in s straight line, however. Tesla stock bottomed out in April 2024.
The 50-day moving average was below the 200-day until late July. Then a "golden cross" formed, a term for when the 50-day moving average crosses over the 200-day moving average. That's a good sign for traders.
Again, Tesla stock did its own thing. Shares were down about 8% from the golden cross formation into the Nov. 5 election.
It's tough to forecast what will happen with this death cross. Tesla is about to report first-quarter earnings, launch a new low-price model, and start a robotaxi service. Positive outcomes on any or all three events could drive Tesla stock higher.
The current death cross might reflect just how nervous investors are about Tesla sales, CEO Elon Musk's DOGE activities, and the impact of tariffs on the global auto industry.
Those are all reasonable fears for investors to track. Right now, the concerns weigh heavier than the potential positives, which is why Tesla stock, coming into Tuesday trading, was down 41% since President Donald Trump's inauguration on Jan. 20.
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