Tesla stock rises 6.7% as China tariff relief and robotaxi plan fuel rally
One of the catalysts is the easing of trade tensions between the United States and China
As of May 13, Tesla stock is trading at $318.38, up 6.7% in 24 hours. Tesla (TSLA) has made a decisive move in recent sessions, experiencing a substantial rally that has propelled the stock to its highest levels since February.
From a technical perspective, Tesla has confirmed a bullish breakout. The stock has surged nearly 40% from its April low of $214.25, decisively moving above its 200-day moving average — a critical long-term indicator. This breakout is further reinforced by the stock's ability to maintain a position above the 50-day moving average, which has now turned upward, signaling the potential for sustained upward momentum.
The Relative Strength Index (RSI), a widely used momentum indicator, is currently at 67, remaining below the overbought threshold of 70. This indicates that the stock still has room for further gains without immediately facing strong selling pressure. Additionally, the Moving Average Convergence Divergence (MACD) has generated a bullish crossover, further supporting the bullish outlook.
TSLA stock price dynamics (March 2025 - May 2025). Source: TradingView
Key resistance levels for Tesla are currently identified at $360, a critical psychological barrier, followed by a more substantial resistance zone at $430. On the downside, initial support is seen at $289, with stronger support established at $225. These levels will be crucial for traders and investors to watch in the coming sessions, as they will help determine the stock’s next direction.
Market context: trade relief and robotaxi catalyst
Tesla's strong performance in recent days has been driven by a combination of external and internal factors. One of the most significant catalysts is the recent easing of trade tensions between the United States and China. Both countries have agreed to reduce tariffs for a 90-day period, providing a much-needed boost for Tesla, which relies heavily on its Shanghai Gigafactory for vehicle production and revenue generation. This relief from trade pressures has been a strong tailwind for Tesla, boosting investor sentiment.
Additionally, the market has been energized by Elon Musk's recent announcement of Tesla’s upcoming robotaxi service in Austin, Texas. Scheduled to launch in June, this initiative represents a major step in Tesla's autonomous driving ambitions. The robotaxi network has the potential to transform Tesla's business model, generating new, recurring revenue streams beyond traditional vehicle sales.
Despite these positive developments, it is important to note that Tesla is not without challenges. The company reported a 40% year-over-year decline in its first-quarter earnings, and there is uncertainty surrounding its ability to meet ambitious delivery targets in 2025. However, investors appear to be focused on the longer-term growth prospects, including the robotaxi initiative and the potential for improved profitability in the coming quarters.
$360 in sight, with $289 as key support
Looking ahead, Tesla's stock appears well-positioned to continue its upward trajectory. The confirmed technical breakout, coupled with strong market catalysts, suggests that the stock is likely to test the $360 resistance level in the near term. A sustained break above this level could open the door to further gains toward $430, a zone that has historically acted as a significant barrier.
However, investors should remain cautious. If the stock fails to maintain its current momentum, a pullback to the $289 support level is possible. Such a decline would not necessarily signal a reversal of the broader uptrend, but rather a natural consolidation after a strong rally. A more severe breakdown could target the $225 level, where strong buying interest is expected.
Tesla has regained investor confidence despite a 40% drop in first-quarter profits and withdrawing its 2025 delivery guidance, supported by strong brand resilience. Positive trade developments and broader market recovery have further boosted interest in growth stocks like Tesla.
