Tesla stock jumps 2.4% as investors eye rebound on autonomous and EV growth
Company-specific news has played a key role in shifting sentiment
As of May 5, Tesla stock is trading at $287.21, up 2.4% in the past 24 hours. The recent uptick continues a recovery trend that began in mid-April, when the stock rebounded from year-to-date lows below $170.
This surge brings Tesla Inc. (NASDAQ: TSLA) closer to a major technical resistance zone, prompting close attention from traders and investors who are evaluating whether the rally has enough momentum to sustain itself or is nearing exhaustion. Tesla’s stock is currently approaching its 200-day moving average, which lies just above the $290 mark—a critical resistance level that has not been breached since January.
A successful breakout above this level could serve as a confirmation of a bullish reversal and open the door to further gains. The next psychological resistance is at $300, a level that acted as strong support in 2023 but turned into resistance during the January-March selloff of this year.
TSLA stock price dynamics (March 2025 - May 2025). Source: TradingView.
Short-term momentum indicators are sending mixed signals. The Relative Strength Index (RSI) is hovering near 68, suggesting that TSLA is approaching overbought territory. Historically, RSI values above 70 have triggered brief pullbacks in Tesla’s stock. On the other hand, the Moving Average Convergence Divergence (MACD) remains in a bullish setup, with the MACD line continuing to move above its signal line since April 22, indicating strong upside momentum.
Market context: fundamentals improve, but risks remain
Tesla’s rebound comes in the wake of improving sentiment around both the company’s outlook and the broader market. The Nasdaq Composite has been resilient in recent weeks, driven by renewed appetite for tech and growth stocks as bond yields have stabilized. Investors are also increasingly pricing in the possibility of Federal Reserve rate cuts later in 2025, which would be supportive for high-beta names like Tesla.
Company-specific news has played a key role in shifting sentiment. CEO Elon Musk has publicly committed to focusing more time on Tesla operations, a message that was well received by long-term shareholders. At the same time, Tesla’s management has reaffirmed plans to aggressively roll out new autonomous driving features by the second half of 2025. While first-quarter earnings came in below expectations—reflecting a decline in delivery volumes and margins—the market appears to be looking past the weak results in anticipation of improved future performance.
On the geopolitical front, Tesla remains vulnerable to international trade tensions, particularly involving China and Europe. Tariff-related volatility could have a direct impact on margins, as could competition from emerging EV manufacturers in Asia. In Europe, recent data showed a year-over-year decline in Tesla’s sales in Germany and the UK, adding to concerns about softening demand in some markets.
Breakout likely, but short-term volatility expected
With Tesla currently at $287.21 and testing major technical resistance, the stock is at a crossroads. If the bulls can maintain momentum and close above $300 in the coming sessions, the next target would be the $335–$360 range, where Tesla last traded in late 2023. This would imply roughly 15 to 25 percent upside from current levels. In this bullish scenario, catalysts would include stronger-than-expected delivery data in Q2 or new announcements about autonomous vehicle progress.
On the downside, failure to clear the $300 mark could result in a pullback toward $260 initially, with stronger support near $225. This zone also coincides with the 50-day moving average, which has acted as a reliable support level during prior pullbacks this year.
Tesla’s rally is supported by optimism over a nearing global trade agreement that could lower export costs and ease regulations. Additionally, the Federal Reserve’s neutral policy stance and pause on rate hikes are boosting sentiment for high-growth stocks like Tesla.
