Tesla stock soars 9.8% as Musk refocuses on core business
Broader market sentiment has improved markedly, especially in the tech sector.
As of April 28, 2025, Tesla (TSLA) is trading at $284.95, up an impressive 9.8% in the past 24 hours. This strong rebound extends a rally that has been building momentum over the past several sessions.
Technically, TSLA has now climbed firmly above its 50-day moving average, a key short-term indicator that signals strengthening bullish sentiment. The stock's volume during the rally has also been significantly higher than average, lending credibility to the breakout.
Despite this bullish move, Tesla faces major resistance just ahead. The 200-day moving average, currently sitting near $289, presents a formidable technical hurdle. A convincing close above this level would suggest a more durable reversal of the recent downtrend, possibly attracting additional institutional buying. The Relative Strength Index (RSI) has risen sharply above 60 but is nearing the overbought threshold of 70, suggesting that TSLA could face short-term profit-taking pressure.
TSLA stock price dynamics (February 2025 - April 2025). Source: TradingView.
Support levels have shifted higher following the rally. Immediate support lies around $270, aligning with the top of the previous consolidation range. Deeper support can be found near $250, which coincides with earlier reaction lows. Technically, the structure suggests that while bulls are regaining control, the rally must clear the $300 psychological barrier to fully confirm a bullish trend reversal.
Investor confidence rises with leadership refocus
The surge in Tesla’s share price is not happening in isolation. Broader market sentiment has improved markedly, especially in the tech sector, with the Nasdaq Composite Index up 1.3% on April 25. This risk-on environment has created favorable conditions for high-beta stocks like Tesla to outperform.
A significant catalyst for Tesla specifically has been CEO Elon Musk’s recent communication regarding his renewed focus on Tesla operations. Musk announced he would be stepping back from several non-core projects to dedicate more attention to Tesla’s automotive and energy divisions. This decision comes at a critical time, as investors had grown increasingly concerned about leadership distractions and strategic dilution.
However, risks remain. Tesla’s Q1 delivery numbers were softer than expected, raising concerns about demand elasticity, particularly in China where competition is intensifying. Additionally, geopolitical tensions and tariff threats between the U.S. and China could weigh on Tesla's international profitability. Investors should also be wary of broader market volatility, especially if macroeconomic data points to a slowdown or if inflation concerns resurface.
Cautious optimism with high-stakes breakout potential
Looking ahead, Tesla’s price action suggests a cautiously optimistic near-term outlook. If TSLA can decisively break above the $289–$300 resistance area, the next upside targets would be $315 and $325, corresponding to previous resistance levels from late 2024. A strong breakout could trigger a short-covering rally and attract technical momentum traders, providing additional fuel for gains.
Conversely, failure to overcome resistance at $300 could result in a period of sideways consolidation between $270 and $300. In the event of renewed selling pressure, Tesla would likely retest the $270 support level, with a further downside risk to $250 if macro conditions deteriorate.
Tesla’s withdrawal of its 2025 vehicle delivery guidance, citing geopolitical and trade risks, has unsettled investors. Analysts interpret the move as a sign of growing internal caution amid slowing global EV demand and rising competition from Chinese and European automakers.
