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Tesla (TSLA) Stock Can Slump to $170 “in Weeks,” Technical Analyst Says

Tesla’s (TSLA) shares can slump to $170-$180 “in weeks,” Gareth Soloway, Chief Market Strategist of Verified Investing said recently on Schwab Network. However, Soloway believes that the shares may bounce significantly once they reach those levels.

Meanwhile, the strategist is very bearish on the stock market as he thinks that U.S. equities could tumble 30%-50% from their peak to the bottom.

Soloway’s Technical Analysis of TSLA Stock

The automaker’s shares look poised to drop in the near term, as there is a trend line from its low of January 2023 that connects to its low of April 2024, while the two trend lines will meet at the $170-$180 level, the analyst explained.

However, once the shares reach the latter level, they will be well-positioned to climb by 10% to 20%, according to Soloway.

The Analyst’s Very Bearish Macro View

The uncertainty over trade “will drag on for months, pushing (the U.S.) towards a recession later this year,” Soloway warned. Although trade deals could push the stock market higher in the next week, Soloway thinks that the lows of around three weeks ago could be taken out, opening the door for very large, additional declines.

After the U.S. debt rose and as tariffs are poised to push inflation higher, the U.S. could enter another Great Recession, the analyst warned. “At the very least we’re due for a lost decade for stocks, and we may not see new highs (on the stock market) for 10+ years,” Soloway stated.

A 30%-50% plunge for stocks is a possibility, he believes.

While we acknowledge the potential of TSLA, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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