Tesla stock hits crucial support as Xpeng teases 'Model Y killer' ahead of earnings

Tesla shares fell to a key technical support level around $380 as investors awaited Wednesday’s earnings report and weighed intensifying competition from Chinese EV maker Xpeng. Xpeng teased a new, more affordable “Model Y killer” for China and Europe, adding to pressure on Tesla’s market share narrative. The article highlights that Tesla has dropped below its 50-day EMA, with momentum indicators weakening, suggesting further downside risk toward $350 if earnings disappoint. Analysts expect Tesla’s Q2 revenue to rise to $26.36 billion, up 17.2% year over year, supported by strong deliveries of 480,000 vehicles. However, rising costs and competitive threats could limit margin expansion and weigh on sentiment. A bullish surprise on earnings or guidance could trigger a rebound above $400, but the near-term setup remains cautious to bearish.