Tesla stock soars 5.4% as Musk steps back from politics
There’s strategic uncertainty as Tesla pivots more aggressively into AI and robotics
As of April 24, Tesla stock is trading at $250.74, up 5.4% in the last 24 hours, extending its rally after Elon Musk’s announcement that he would reduce his political commitments and shift his focus back to Tesla.
The stock surged nearly 9% the day prior, touching an intraday high of $259.44, driven by investor optimism around Musk’s renewed commitment to operational execution and innovation. Despite the recent gains, TSLA is still down roughly 36% year-to-date, reflecting broader investor concerns around demand, margins, and market share erosion.
From a technical perspective, Tesla’s price action remains in a precarious position. The chart recently confirmed a death cross pattern, as the 50-day moving average ($288.76) dropped below the 200-day moving average ($290.60). This historically bearish signal suggests momentum could remain subdued unless a strong bullish catalyst emerges. The Relative Strength Index (RSI) has risen to 54, climbing out of oversold territory but still indicating moderate momentum rather than a full bullish reversal.
TSLA stock price dynamics (February 2025 - April 2025). Source: TradingView.
Key resistance levels are located at $289, $315, and $360. A sustained move above $289 would mark the start of a more convincing trend reversal and could attract momentum buyers. On the downside, critical support levels are at $225, $206, and $170. A retracement toward any of these zones would indicate that recent gains were a relief rally rather than a structural bottom.
Investor sentiment shifts on leadership clarity
Investor sentiment has notably improved in response to Elon Musk’s decision to step away from his duties in the Department of Government Efficiency and concentrate fully on Tesla. Market participants had grown increasingly uneasy about Musk’s stretched commitments, especially during a period when Tesla is battling margin compression, competition from Chinese EV makers, and falling demand in key global markets. The announcement helped temporarily calm those concerns, prompting speculative buying and a short-covering rally.
Despite the positive headlines, Tesla’s fundamental performance remains under pressure. The company reported a 71% year-over-year drop in earnings per share to $0.12, significantly below consensus expectations. Revenue also disappointed, coming in at $19.34 billion versus analyst forecasts above $21 billion. The results point to ongoing pricing pressures and softening demand, particularly in China where new tariff discussions are creating further uncertainty.
There’s also strategic uncertainty as Tesla pivots more aggressively into AI and robotics, including its Optimus humanoid robot project. While some see this as the next leg of Tesla’s innovation story, others question whether the company is diluting its core EV focus during a critical inflection point in the automotive industry. Moreover, analysts have warned that Musk’s political commentary and brand polarizing behavior have potentially caused up to a 10% demand reduction, creating long-term reputational risks.
Modest upside, but volatility remains high
Looking ahead, Tesla’s short-term trajectory appears moderately bullish but heavily conditional. If bullish momentum continues and price breaks above the key resistance at $289, the next targets lie at $315 and possibly $360 in the medium term. Such a move would likely require either a positive macro catalyst (such as tariff relief) or company-specific news, such as a surprise product announcement or delivery beat.
On the flip side, if the stock fails to maintain momentum and slips back below $240, it could revisit the $225 and $206 support zones. A drop below $206 would be especially concerning, as it could open the door for a move down toward the psychological $200 level or even $170 in an extended sell-off.
Tesla faces mounting pressure from Chinese EV rivals like BYD, delays in launching a more affordable Model Y, and setbacks in its robotaxi rollout. Meanwhile, ongoing federal scrutiny of its self-driving software is heightening investor concerns around safety.
