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Tesla (TSLA, Financials) is flashing technical warning signs again. S3 Partners says its RSI topped 70 last week often a cue that momentum is stretched. Last time that happened, shares slid hard.
The stock is already down 16% in 2025, even as its market cap holds steady at $1.1 trillion.
Q1 earnings didn't help. Revenue dropped 9% year over year to $19.3 billion. Automotive sales Tesla's core fell 20% to $13.9 billion. EPS missed forecasts, falling 40% to $0.27.
There were bright spots. The energy unit jumped 67% to $2.7 billion, while services grew 15% to $2.6 billion. Operating cash flow hit $2.2 billion, and Tesla returned to positive free cash flow with $664 million. It ended the quarter with $37 billion in cash.
Looking ahead, investors are watching for the Robotaxi and Cybercab reveal in June. Tesla is also pushing further into AI with its Dojo supercomputer and in-house D1 chip, moving away from Nvidia (NVDA, Financials) dependency.
Wall Street is split. The average price target is $284.11, already passed. Of 41 analysts, 18 say buy, 13 hold, and 10 say sell.
This article first appeared on GuruFocus.