Tesla stock slips 0.5% as robotaxi optimism cools near $350 resistance
The autonomous driving segment is considered a multi-trillion-dollar opportunity
As of May 26, Tesla stock is trading at $339.34, down 0.5% in the past 24 hours. Tesla Inc. (NASDAQ: TSLA) has exhibited a strong bullish trend through the month of May, with a cumulative gain exceeding 20%.
Highlights
• Tesla stock is up over 20% in May but recently pulled back 0.5% to $339.34, stalling near the $350 resistance level.
• Technical indicators remain bullish, supported by the breakout above the 200-day moving average and strong volume.
• Investor sentiment is fueled by the upcoming robotaxi launch, though global sales pressure and tariff risks could limit upside.
This resurgence has brought the stock back into favorable territory for technical traders, especially after it decisively moved above its 200-day simple moving average (SMA), which is currently situated around the $330 level. This breakout is widely interpreted as a positive signal, suggesting the resumption of upward momentum following a prolonged consolidation phase.
The $330 level now acts as an important support zone. On the upside, immediate resistance is noted at $350, followed by a more substantial resistance range between $355 and $360, which aligns with past rejection zones observed in mid-2024. A clean break above $360 could trigger an extended rally, potentially targeting the $375–$380 range.
TSLA stock price dynamics (March 2025 - May 2025). Source: TradingView.
The Relative Strength Index (RSI) currently reads around 65, which is approaching overbought levels but still within the healthy bullish momentum range. This supports the idea that the rally may still have legs before facing meaningful exhaustion. Meanwhile, the Average True Range (ATR) stands at approximately 5.25%, suggesting Tesla stock is experiencing moderate intraday volatility, neither exceptionally calm nor overly erratic.
Market context: AI optimism balanced by global risks
Tesla's recent performance has been boosted by renewed investor optimism, largely driven by announcements around its entry into the autonomous vehicle sector. According to a recent article on MSN summarizing analysis from Wedbush, the investment firm has returned to its bullish stance on Tesla, assigning a price target of $500 per share. This shift in sentiment is anchored by Tesla’s plan to launch a limited robotaxi service in Austin, Texas, in June 2025.
Dan Ives of Wedbush views this development as the "iPhone moment" for Tesla, likening the robotaxi rollout to a pivotal step that could define the next phase of the company’s growth. The autonomous driving segment is considered a multi-trillion-dollar opportunity, and Tesla’s first-mover advantage may help it secure significant market share. This bullish narrative has been echoed across the broader tech-investing community, particularly given Tesla’s integrated AI infrastructure and vertically controlled supply chain.
However, global economic headwinds cannot be ignored. Tesla’s sales figures in key international markets like China and Germany have shown signs of deceleration, which may offset gains from U.S. innovation initiatives. Additionally, potential political and trade risks loom over the horizon. Notably, former President Donald Trump has floated the idea of a 50% tariff on EU imports, which could spark a retaliatory cycle affecting Tesla’s supply chains and European market prospects.
Bullish bias with conditional upside
Assuming market conditions remain stable and Tesla proceeds with the Austin robotaxi launch as scheduled, the stock is likely to challenge the $350 resistance within the next 1–2 weeks. A decisive move above $360 would unlock a bullish scenario targeting $375 to $380 in the short term, particularly if volume and RSI continue supporting the rally.
On the flip side, a pullback below $330 would invalidate the bullish setup and may lead to a retest of support around $310. A fall below this level would indicate a more extended consolidation, especially if global economic or geopolitical factors worsen.
Tesla faces growing competition in the global EV market, especially from Chinese automakers like Xiaomi. The upcoming launch of Xiaomi’s YU7 SUV, aimed at rivaling the Model Y, threatens Tesla’s market share in Asia with aggressive pricing and advanced features.
