Tesla China is introducing a three-year interest-free loan for the refreshed Model Y, alongside five-year interest-free loans for the Model 3 Rear-Wheel Drive and long-range trim until April 30. This initiative comes as Tesla faces a 49% decline in sales, with BYD emerging as the leading EV brand in the country.
Currently, Tesla shares are down by $16.27, representing a 6.14% decrease, at a price of $247.56. Last week, the stock reached a high of $291.85 before closing at $273.13, testing the 200-day moving average at $287.04.
Tesla Stock Price Movement
Today’s price drop has filled the gap from the close on March 21 to the open on March 24, which ranged between $249 and $256, with a low today of $243.36.
This report outlines Tesla’s recent shift in its financing options offered specifically in China, aimed at stoking demand during a difficult quarter. The new push includes a three-year interest-free loan for the updated Model Y, and extended interest-free terms of up to five years for selected configurations of the Model 3. These measures are in direct response to a sharp 49% sales drop and increasing competitive pressure from BYD, which has now overtaken Tesla as the local market leader.
From a financial perspective, the downward movement in shares by more than six percent, closing at $247.56, is not just a usual fluctuation. This drop has erased almost all the gains seen after the stock briefly touched $291.85 just a few days earlier. The distance between that high and today’s low of $243.36 shows how fast investor confidence is being tested, especially now that the price has fallen below the 200-day moving average. That average, which had hovered around $287, tends to serve as a long-term directional marker, and slipping under it has implications for longer-horizon sentiment.
Technical And Market Analysis
The market also just filled an open gap from late March, spanning $249 to $256. Gaps often act like magnets for price action: once closed, they clear technical imbalances and allow for a more stable support zone to form—at least momentarily. With that adjustment complete, it can either form a new base or continue its descent if selling persists.
In the weeks ahead, it would make sense to treat current support areas—specifically around the $243 region—as provisional rather than firm. These can hold for traders aiming for short-term retracements, but shouldn’t be relied upon for long directional bets unless confirmed by volume patterns or broader market alignment. We are also dealing with a stock that not only went below its long-term average but did so amidst macro headwinds and headline risk. Keep one eye on the broader indices as well—if they falter, expect momentum to quicken to the downside.
For options positioning, implied volatility may tick upward due to daily price swings. Spreads could be adjusted to reflect both the nearing earnings date and the added uncertainty from the China strategy—it introduces margin compression risk, which some may not have priced in.
Short-dated puts might retain their premium if this selling trend persists, especially if volume stays elevated. Meanwhile, any rebound attempts face overhead resistance near $256 and, further up, $273. Those are now embattled levels where buyers failed to maintain control, giving sellers a psychological edge when price approaches again.
We’re also entering a stretch on the calendar where broader market earnings, inflation data, and currency metrics will inject more volatility. That alone should influence positioning adjustments across the board. If price remains below $250 by week’s end, the tone will likely shift from short-term correction to longer-term revaluation. Let the tape confirm before entering new directional trades.
