Tesla Inc (NASDAQ:TSLA) shares are dipping on Monday, extending a multi‑week slide as the company faces renewed worries about a potential semiconductor shortage and surging oil prices tied to the Middle East conflict.

Oil Price Surge Adds Pressure

Oil prices are adding to the anxiety as the U.S.–Israel–Iran conflict enters its second week. Crude pushed past $100 a barrel Monday morning, fueled by Iran's continued closure of the Strait of Hormuz and attacks on oil infrastructure across the region, Barron’s reported.

Even though Tesla vehicles don't rely on gasoline, higher energy prices can strain household budgets and slow the broader economy, potentially dampening demand for big‑ticket items like EVs.

China Chip Export Concerns Re‑Emerge

Chip supply worries are resurfacing as well. According to Reuters, China's commerce ministry is considering export controls on semiconductors produced by Chinese subsidiaries of Dutch chipmaker Nexperia — a dispute that first flared up in late 2025.

Nexperia supplies components such as power‑management chips, diodes, transistors and basic integrated circuits used throughout modern vehicles. Any disruption could easily ripple through the auto industry and threaten production schedules.

TSLA Trades Below Key Levels

Tesla is currently trading below its key moving averages, indicating bearish pressure in the market. With the stock positioned 5.3% below its 20-day SMA, 9.2% below its 50-day SMA and 10.6% below its 100-day SMA, traders should be cautious as this suggests a struggle to maintain upward momentum.

The RSI is currently at 40.02, which is considered neutral territory. This level indicates that Tesla is neither overbought nor oversold, suggesting that momentum could shift either way depending on upcoming price action. Meanwhile, MACD is below its signal line, indicating bearish pressure on the stock, suggesting the downward trend may continue unless there is a significant change in momentum.

Key support is at $387.50, while resistance is at $420.50. If Tesla tests the support level and fails to hold, it could signal further declines, while a break above resistance may indicate a potential reversal or trend continuation.

Looking at the 12-month performance, Tesla’s stock has gained 74.93%, reflecting a strong recovery from its lows. However, the current positioning within the 52-week range, at 61.2%, suggests that while the stock has made significant gains, it is still facing challenges in maintaining upward momentum.

TSLA Price Action: Tesla shares were down 1.68% at $390.09 at the time of publication on Monday, according to Benzinga Pro.

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