- TSLA fell 10.77% to $343.69 on 5 November.
- AI selloff, not Tesla news, drove the drop.
- Reclaim $350 for a bounce; lose $343 and $330 is next.
- 1$350.00 Key resistanceResistance at the previous low; a close above targets 385
- 2$349.95 Previous low · ResistanceSeptember 30 low that is now the first resistance hurdle
- 3$343.69 Support at closeNovember 5 closing price; a close below opens 330
- 4$388.92 14-week high · ResistanceOctober 26 peak and major ceiling
- 5$330.00 Round number supportDownside support target if price closes below 343.69
- 6$385.00 Bullish targetResistance level and upside target on a close above 350
TradingView Lightweight Charts™ · Yahoo Finance data
Tesla lost almost 11 percent of its value in a single day. According to Fox Business, the stock was down approximately 10.77 percent on November 5th. This loss was just one of many during the AI sector sell-off which occurred following the midterm elections. Jakub Rochlitz of eToro stated, “The market believes the AI infrastructure development process will be slower and costlier.” At the end of trading on November 5th, Tesla closed at around $343.69 per share. The chart below illustrates how much Tesla lost in that single day. Was this a reaction to a panic or a reset?
Figure 1: Tesla (TSLA) closing prices, 30 September to 5 November 2026, with the 14-week high and the old 349.95 low.
Reading the Chart
The black line starts at $349.95 on September 30th. This is the lowest point during this time frame. On October 9th, Tesla goes up to $386.83. On October 26th, Tesla reaches its highest price ($388.92) since July 2017. Tesla closed at $385.19 on November 4th. After reaching that peak, Tesla’s stock price dropped rapidly to $343.69. The pink region shown on the chart from $343 to $352 represents the previous low area. Tesla’s stock price is currently at the lower end of that range. If Tesla continues to fall below the bottom of that range, then it will set a new low for this period. In one single day, five weeks of gains have been erased. Therefore, the previous low of $349.95 is now a level of resistance that must be exceeded. See how Marvell tested key support.
Why Tesla Fell
Tesla did not report bad news. It fell with the whole AI trade. Democrats took both chambers of Congress. Investors fear tougher rules for data centres. Yahoo Finance says both Tesla and SpaceX slid on those worries. Tesla’s value rests on self-driving, robotaxis and Optimus. So, it trades like an AI stock. That is fine when AI is loved. It hurts when AI is doubted. Read about another AI casualty in our SMCI analysis.
What the Numbers Say
The third quarter had mixed results. According to Electrek, the company reported revenue of $28.05 billion, which was essentially the same as what the company reported for the previous year. On the other hand, the company reported adjusted earnings per share of $0.48, beating the analyst consensus estimate of $0.45. However, net income decreased by 43 percent to $787 million. Capex increased significantly to $4.73 billion, up from $2.15 billion. It appears that spending is growing rapidly, but earnings are not. Free cash flow decreased from $3.99 billion to $1.53 billion. In their letter to shareholders, the company stated that “battery availability” was the main issue. Earnings can move a stock hard, as our Alphabet earnings report shows.
Levels to Watch
The map is simple. There is resistance at $350 (the previous low). After that are resistance levels of $385 and the all-time high of $388.92. Support is found at the $343.69 close. Following that is the round number support level of $330. Only buy dips if price reclaims a level and maintains it. Waiting for a daily close may cost you a couple of dollars, but it will save you from making several false moves.
Three Scenarios
- Bullish: a close above $350 targets $385.
- Bearish: a close below $343.69 opens $330.
- Neutral: choppy trade between $330 and $350.
Short and Long-Term Outlook
Short term, expect wild swings. After a drop this size, momentum often reads oversold. Our RSI and stochastic guide shows how to read that. Longer term, Dan Ives of Yorkville says a SpaceX and Tesla merger now faces a harder path, per Yahoo Finance. Will buyers defend $343? Or does the slide go on? Never risk more than you can afford to lose.
Frequently Asked Questions
Why did Tesla stock fall on 5 November?
A broad AI selloff hit chip and tech stocks after the midterms. Investors feared slower data centre growth.
What is the key Tesla resistance?
$349.95 is the first hurdle. The 14-week high at $388.92 is the major ceiling.
How did Tesla do in Q3 2026?
Revenue was flat at $28.05 billion. Adjusted EPS was $0.48, above forecasts.
What is your outlook on Tesla?
Anonymous · no sign-up · results from the last 30 days · not investment advice