Tesla stock gains 0.4% as breakout rally holds ahead of robotaxi reveal
Sales figures from Europe and China have shown signs of strain
As of May 30, Tesla stock is trading at $358.43, up 0.4% over the past 24 hours.
The stock has made an impressive recovery, rebounding over 60% from its April low of $221.86.
Highlights
- Tesla stock climbed 0.4% to $358.43, maintaining momentum after a 60% rebound from April lows.
- Technical indicators suggest continued bullish momentum, though RSI near 70 points to possible short-term consolidation.
- Investors are closely watching the June 12 robotaxi launch and policy developments impacting EV incentives.
Tesla is currently trading above its key moving averages. The 50-day simple moving average sits at $281.54 and the 200-day average at $300.85. These averages now act as solid support levels, and their positioning below the current price confirms the strength of the ongoing uptrend. Moreover, the stock has consistently closed above both averages throughout May, indicating that the bullish momentum remains intact.
The Relative Strength Index (RSI) is at 67.29, nearing the traditional overbought threshold of 70. This suggests that while there is still room for further gains, short-term traders should be prepared for possible minor pullbacks or consolidation periods. On the upside, Tesla faces immediate resistance at $368.68, followed by a more significant hurdle at $374.47. If these levels are breached, the next major resistance zone lies near $430, which aligns with the high reached in early December.
TSLA stock price dynamics (March 2025 - May 2025). Source: TradingView.
On the downside, initial support is expected near $325, with a more substantial floor around $289. These levels will be critical to watch in the event of a short-term retracement, as they may offer attractive entry points for buyers who missed the initial breakout.
Market context: Musk's renewed focus and strategic shifts
One of the primary catalysts for Tesla’s recent strength is the renewed investor confidence stemming from Elon Musk's public decision to step back from his role in the Department of Government Efficiency (DOGE). His reengagement with Tesla’s core operations has been perceived as a reassuring move by the market, quelling concerns about leadership distractions and reaffirming Musk’s commitment to the company’s strategic objectives.
Tesla is also preparing for a major product event: the long-awaited launch of its robotaxi fleet in Austin, Texas, scheduled for June 12. This project is a central pillar of Tesla’s long-term autonomous vehicle strategy. Analysts, including Wedbush’s Dan Ives, believe that autonomous driving represents the next transformative phase for the company. Ives recently raised his Tesla price target to $500, citing the robotaxi platform as a “massive monetization opportunity.”
However, Tesla’s global challenges should not be overlooked. Sales figures from Europe and China have shown signs of strain, with competition from local EV manufacturers like BYD intensifying. In Q1 2025, BYD surpassed Tesla in global EV deliveries, a symbolic shift that underscores the rising pressure from international rivals.
Potential rally towards $430, but caution warranted
Given the strong technical setup, Tesla appears well-positioned for a continuation of its bullish trend, with a short-term target in the $430 range. This target corresponds to a key resistance zone from late 2024 and would mark a nearly full retracement of the prior bear cycle. The convergence of positive technical momentum and strategic clarity from Musk could serve as the dual engine behind this next leg up.
Nonetheless, caution is warranted due to the RSI nearing overbought levels and the looming policy risks in the U.S. EV market. A failure to break above $368.68 may lead to consolidation or a corrective move toward $325 or $289. Traders should closely monitor Tesla’s June robotaxi unveiling and any updates related to EV incentives, as these events will be pivotal in determining the stock’s trajectory in the coming weeks.
Ark Invest projects Tesla shares could hit $2,600 by 2029, driven by expected revenue from its autonomous vehicle fleet. Despite a more than 16% year-on-year drop in vehicle deliveries, investor momentum remains strong, supported by Elon Musk’s confidence in EV demand.
