Tesla stock plummets amid disappointing autopilot software upgrades

In the context of a challenging week for the stock market, notable fluctuations were observed among major indices in the United States. The S&P 500 experienced a 1% drop, while the Nasdaq Composite saw a more significant decline of 3.5%. Conversely, the Dow Jones Industrial Average emerged as the best performer, recording a 1% gain. This volatility coincided with recent tariff promises from the Trump administration, which have understandably caused unease among investors. Additionally, signs of a potential economic softening contributed to the overall market hesitance. One focal point in this environment was the performance of Nvidia, often considered a leader in the tech sector. Following a disappointing earnings report, Nvidia's shares fell by 8.5%, which compounded the anxious sentiment in the market. Wall Street observers and analysts began to scrutinize fluctuations in stock values more closely, leading to the identification of numerous stocks categorized as either oversold or overbought according to their 14-day relative strength index (RSI). Among the most oversold stocks highlighted in a recent CNBC Pro report was electric vehicle manufacturer Tesla, which recorded an RSI of just 18. This figure placed it well within the oversold range, suggesting a possible rebound could occur shortly. The significant decline in Tesla's stock price appears to have been influenced by a recent report from Reuters indicating that new autopilot software updates rolled out in China had disappointed many users. The effects were bolstered by comments from Barclays analyst Dan Levy, who speculated that a combination of technical reversals and other factors had catalyzed the recent sell-off in Tesla shares. In contrast, Philip Morris International was flagged as an overbought stock with an RSI of 78, attracting attention after being initiated with an overweight rating by Morgan Stanley. The firm cited the expected growth of its smoke-free product range as a reason for optimism regarding PMI's future performance. Meanwhile, Gilead Sciences received an upgrade from Deutsche Bank, reflecting positive expectations about its long-term revenue growth prospects. These contrasting stock performances highlight divergent strategies within the technology and healthcare sectors amid a complicated economic landscape.