Why former Wall Street darling Tesla has slipped into reverse

Tesla stock was an investor favorite in 2013, but the electric car maker has been stuck in a logjam.

Since the company's stocks spiked by 344 percent that year, Tesla has essentially been bouncing between two well-defined levels.

"It's been almost in a sideways range in the past few years, a very wide trading range with about $185 acting as a downside support, and $285 as an upper-level resistance," Oppenheimer technical analyst Ari Wald said Monday on CNBC's "Trading Nation." "Given this lack of a trend, it's not my favorite long idea, it's not my favorite short idea, so I see better opportunities elsewhere."

Despite the carmaker's insistence that it's on track to meet its delivery goals, Tesla has been plagued with manufacturing problems. The company also reported a wider-than-expected loss for the first quarter that sent its shares sinking.

Tesla also recently announced that it was moving up its production targets by two years to meet an advanced deadline, aiming to complete 500,000 vehicles by 2018. The plan has some, including Crossing Wall Street editor Eddy Elfenbein, worried that such a plan may send Tesla shares into reverse if things don't go as planned.

"My fear is if they miss that for any reason, it would be punished very severely on the market. Right now I don't see any momentum with this stock," he said Monday.

Tesla shares are down some 17 percent in the past month.

Read MoreTesla's aggressive new production goals are 'mission impossible': AutoNation CEO


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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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