Tesla stock stalls below $350 as robotaxi debut nears
CEO Elon Musk has announced he will focus full-time on Tesla, putting other ventures on hold
s of June 2, Tesla stock is trading at $346.46, down 3.3% over the past 24 hours.
The stock has posted an impressive recovery from its April 2025 low of $221.86, gaining more than 60% in under two months.
Highlights
- Tesla is consolidating near the $350 level, with strong resistance at $380 and support at $325 and $289.
- The upcoming robotaxi launch and Elon Musk’s full-time focus on Tesla are seen as potential catalysts.
- Short-term price movement will depend on whether TSLA can break above $380 or falls back to test lower support levels.
Tesla is currently consolidating beneath the $350 psychological barrier, with immediate resistance seen at $380. This level corresponds with the 61.8% Fibonacci retracement from the December 2024 high of $479.86. A clean break above $380 could confirm the continuation of the bullish reversal. Short-term momentum, however, is showing signs of fatigue. The Relative Strength Index (RSI) stands at 40.48, a neutral level, while the Moving Average Convergence Divergence (MACD) indicator is negative at -0.48, suggesting weakening bullish momentum.
TSLA stock price dynamics (April 2025 - June 2025). Source: TradingView.
Despite the short-term hesitancy, TSLA remains above its 200-day moving average at $308.26, signaling strength from a long-term trend perspective. Key support zones to watch include $325 — marking the recent pennant breakout — and the $289 level, which aligns with a multi-week triple bottom formed between March and April. Volume has also tapered in recent sessions, implying that bulls are hesitant to chase the stock higher without a fresh catalyst.
Optimism builds around robotaxi launch and Musk’s renewed leadership
Tesla’s sharp rebound has been driven largely by renewed optimism around its upcoming robotaxi launch, scheduled for June 12, 2025, in Austin, Texas. CEO Elon Musk has announced he will focus full-time on Tesla, putting other ventures on hold. This shift has helped reassure investors concerned about leadership distractions, particularly around Musk’s involvement in X (formerly Twitter) and SpaceX.
The robotaxi service will initially launch in a controlled environment, with 10–20 Model Y units operating within geofenced areas under human supervision. This measured rollout has been seen as a strategic move to gain regulatory traction while demonstrating the real-world viability of Tesla’s autonomous driving technology. If successful, it could signal a significant shift in Tesla’s business model, introducing a recurring revenue stream beyond vehicle sales.
However, challenges remain. Tesla’s performance in China, its second-largest market, is under pressure. May sales were approximately 39,000 units, representing a 30% year-over-year decline. This contraction reflects intensified competition from domestic EV manufacturers, especially BYD, which has aggressively slashed prices. The ongoing price war has compressed margins and raised concerns about demand sustainability in a key growth market.
Range-bound trade likely unless $380 breaks decisively
In the short term, Tesla stock is expected to trade within a range of $325 to $380. The $380 level remains a critical resistance. A breakout above this zone, especially on strong volume, could open the path to $430, with a medium-term target near $489 — Tesla’s all-time high from November 2021. Such a move would likely require a highly successful robotaxi launch or a significant upside earnings surprise.
On the downside, a failure to break $380 could lead to a retest of $325, and if selling accelerates, $289 would serve as the next major support. That level would mark a potential buying opportunity if the broader market remains stable.
Tesla faces mounting global competition, particularly from Chinese rival BYD, which overtook Tesla in global EV deliveries in Q1 2025. Sales in Europe and China have weakened, highlighting the growing threat from local manufacturers.
