Tesla stock gains 1.9% as investors eye robotaxi launch and $355 breakout
Tesla continues to face intensified competition, particularly from Chinese automakers
As of May 23, Tesla stock is trading at $341.04, up 1.9% in the past 24 hours. The stock has shown notable resilience, extending its recent recovery after a volatile start to the year.
Highlights
• Tesla's stock is trading above key moving averages, signaling continued bullish momentum with resistance at $355.
• Market sentiment is mixed due to potential U.S. tax credit removal and rising EV competition from Chinese brands.
• A breakout above current levels could trigger further gains, though recent EU sales declines raise caution.
Tesla’s price action remains well-supported above both its 50-day and 200-day moving averages, at $266.97 and $295.98 respectively. The recent price of $341.04 marks a sustained hold above the 200-day average, often viewed as a key technical indicator signaling longer-term upward momentum. Over the past month, TSLA has gained more than 45%, staging a strong rebound after prior weakness driven by earnings concerns and delivery misses.
From a pattern perspective, the stock appears to be consolidating within a bullish continuation formation, potentially setting the stage for further gains. Technical support is established at $289, coinciding with a neckline from a previously completed triple bottom, and at $271, near the 50-day moving average. These levels offer potential entry points for buyers on pullbacks.
TSLA stock price dynamics (March 2025 - May 2025). Source: TradingView.
On the resistance side, Tesla faces overhead barriers at $354.99, its recent swing high, and further out at $430 and $489, levels that correspond with earlier peaks from 2023. A sustained move above $355 would confirm a breakout, increasing the probability of a rally toward the $400–$430 zone in the coming weeks. The Relative Strength Index (RSI) currently hovers near 65, suggesting TSLA is approaching overbought territory, although there remains room for upside before hitting extreme levels.
Market context: policy uncertainty and competitive tension
While technical indicators point toward strength, the broader market environment and regulatory risks introduce caution. A notable headwind is the proposed tax legislation under former President Donald Trump’s economic agenda, which includes potentially eliminating the $7,500 federal electric vehicle tax credit. Such a move could undercut demand for Tesla’s EVs, particularly in North America, which remains its largest market.
In the global arena, Tesla continues to face intensified competition, particularly from Chinese automakers. Xiaomi, for example, plans to launch its mid-size electric SUV, the YU7, directly targeting Tesla’s Model Y segment. As these firms offer competitive pricing and rapidly improving technology, Tesla’s market dominance, especially in Asia, could be challenged.
However, positive catalysts remain. CEO Elon Musk’s recent recommitment to Tesla’s core operations, combined with anticipation surrounding the unveiling of the robotaxi Model Y prototype in Austin later this year, have fueled speculative buying. Investor optimism also centers on potential advancements in autonomous driving and next-generation battery technology, both of which could materially enhance Tesla’s margins and technological edge.
Upward bias holds, but watch key levels
Looking ahead, Tesla stock is likely to remain range-bound between $289 and $354.99 over the short term as consolidation continues. If the stock manages to breach the upper boundary of $355 with strong volume, it could trigger a renewed uptrend, targeting $400, and potentially $430 within a 4–6 week horizon.
However, failure to hold above the $289 support level would shift sentiment and likely prompt a retest of the $271 level. A break below that threshold could invalidate the current bullish setup, introducing the risk of a deeper correction.
Tesla's vehicle registrations in the European Union fell significantly in Q2 year-over-year, highlighting a concerning trend for its international growth. The decline comes amid intense EV price competition, further pressuring Tesla's global market position.
