Tesla shares fall to their lowest relative strength level in over a year as earnings disappoint and AI spending plans raise investor concerns.
Tesla’s stock has plunged to its most oversold level since March 2025, with its relative strength index (RSI) dropping to 14. The RSI, a momentum indicator, signals extreme oversold conditions below 30, suggesting a potential rebound may follow. Shares are down 30% year-to-date, underperforming the S&P 500’s 8% gain.
The sell-off accelerated after Tesla’s earnings call last week, where executives provided little clarity on the Robotaxi rollout or the commercialization of its Optimus humanoid robot. The company also missed Wall Street earnings estimates, deepening investor skepticism about its $25 billion capital expenditure plan for 2026, nearly triple its historical spending.
Analysts warn that Tesla’s aggressive AI investments may take longer to yield returns, with spending expected to rise further in 2027. The lack of near-term catalysts has weighed heavily on sentiment, though some traders may view the oversold conditions as a buying opportunity.