On February 20, Tesla’s 50-day moving average shifted into a bearish trend as the telltale trendline shifted into a declining pattern. The last time Tesla’s 50-day followed a similar trend was January 24, 2024. That shift in the stock’s momentum preceded a 22% decline in Tesla shares over two-month period.

Tesla (NASDAQ: TSLA) investors have been on a roller-coaster ride for the last few years. Shares in the electric vehicle (EV) giant surged in 2020 and 2021 as business boomed in the post-pandemic period.

Tesla stock has been weak lately as investors digest early sales data and try to determine whether a drop is due to random fluctuations—or something more serious. It’s still too early to tell, but the data aren’t great.