By 
Tesla’s impressive stock rally hit a setback after a German court ruled that an advertisement claiming Tesla’s cars could operate autonomously was misleading. The case, brought by a German antitrust agency, resulted in a decision against Tesla, although the company has the option to appeal. As a result, Tesla is now prohibited from running ads that the court considers misleading about its driver assistance systems.
This ruling caused Tesla’s stock to drop sharply, closing 3.08% lower at 1497.06 yesterday. The stock opened with a downward gap today, though buyers are actively trying to close it. Tesla’s bullish investors are facing challenges on a day when the Nasdaq 100 is experiencing a significant selloff.
### Technical Outlook for Tesla Stock
The rapid ascent of Tesla’s share price makes it susceptible to further declines. If today’s trading ends with a pinbar candle, as it currently appears, this would strengthen the case for a potential drop to retest the support level at 1433.50, which was formed by the previous high on July 7 and today’s intraday low. If this level breaks, the next support levels to watch are 1307.51 and possibly 1134.35 if the selloff continues.
On the other hand, the highs from earlier this week are the closest upside target. However, any move toward new record highs would require breaking above yesterday’s peak at 1792.02.