What triggered Tesla shares' latest price surge

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Tesla rises 2.79% today to $378.03

Highlights

Tesla, SpaceX, and xAI are investing $20–25 billion to build the Terafab AI chip factory in Austin for in-house semiconductor production.
Terafab is expected to achieve large-scale chip output by late 2027 to support Tesla vehicles, robotics, and AI data centers.
Tesla stock remains under broad bearish pressure, trading below key averages, with next week’s range projected at $372.00–$382.18 and further downside risk dominating.

AI chip factory launch with SpaceX and xAI sparks historic investor interest

Tesla has officially announced the launch of Terafab, an AI chip factory project in Austin, Texas, valued at $20–25 billion, as a joint venture with SpaceX and xAI. The initiative aims for vertical integration in semiconductor manufacturing for use in Tesla vehicles, robots, and AI data centers, with large-scale production set for the second half of 2027. The launch was marked by an event at Austin’s Seaholm Power Plant, where Elon Musk described the project as historic for chip-building.

Anton Kharitonov, expert at Traders Union, views Tesla’s ongoing underperformance against major moving averages as a clear sign of persistent selling pressure. He notes the news on the Terafab project as ambitious but believes it does little to change the immediate bearish technical picture. The lack of strong support above current levels leaves the stock exposed to further downside if $372.00 breaks. Kharitonov remains wary of oversold technicals given momentum remains weak. He says, "Sustained caution is necessary here as the technical and sentiment backdrop still favors sellers despite oversold readings."

Viktoras Karapetjanc, expert at Traders Union, highlights the strategic importance of Tesla’s Terafab launch and partnerships with SpaceX and xAI. He believes this level of vertical integration will bolster Tesla’s AI leadership and drive long-term value. Despite current technical challenges, Karapetjanc sees strong underlying fundamentals and visionary execution. He states, "This new AI chip venture positions Tesla for future growth, and I expect bullish momentum to re-emerge as market participants reassess the company’s outsized opportunities."

Parshwa Turakhiya, analyst, sees Tesla trading in a tightly defined range with short-term sentiment still pressured by bearish technicals. Oscillator readings indicate an oversold state, hinting at possible near-term relief rallies but with strong resistance above. The recent Terafab news may spark brief optimism but does not yet shift the technical setup. Turakhiya adds, "Traders should watch for quick opportunities in the $372.00–$382.18 range, while keeping risk in check until the trend confirms a clear breakout."

Bearish momentum confirmed as price breaks major moving averages

Tesla remains under sustained selling pressure across all major time frames, trading below its MA-20 ($398.47), MA-50 ($415.29), and MA-200 ($394.37) moving averages. The nearest dynamic resistance is found at the Ichimoku Kijun level of $400.40, while no significant support levels are present above the current price. Momentum indicators such as MACD and ADX both show dominant bearish signals, and oscillators including RSI (31.87), Stoch RSI, CCI, and BBP suggest an oversold condition, with the intraday BBP further signaling prevailing seller control and moderate volatility.

Earlier, analysts noted that Tesla was facing ongoing technical weakness and a dominant bearish trend despite major new initiatives. The current setup reaffirms this outlook, emphasizing the importance of monitoring the $372.00 level as a potential trigger for further downside risk in the days ahead.

Source of Data: TSLA Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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