Tesla stock gains 3.7% as Cathie Wood doubles down
Regulatory threats further complicate Tesla’s medium-term prospects
As of June 9, Tesla stock is trading at $295.14, up 3.7% over the past 24 hours.
This marks a sharp reversal from the recent downtrend, where Tesla had underperformed broader tech indices.
Highlights
-Tesla stock rose 3.7% to $295.14, reversing a recent downtrend and approaching key resistance at $305.
- Technical indicators like RSI, MACD, and Bollinger Bands point to strengthening bullish momentum.
- However, policy risks and CEO-related controversies continue to pose downside threats.
The 50-day simple moving average sits near $277, and the 200-day moving average is hovering around $228, signaling that while the long-term trend remains bullish, the short-term momentum has only recently turned positive. Relative strength index (RSI) stands at 58, not yet in overbought territory, which indicates there may be further room to the upside. However, Tesla will face immediate resistance at the $305 level — a psychological and technical ceiling tested in early May and again last week. If bulls manage to break through this zone, the next major resistance lies at $320.
On the downside, support has solidified at the $290 level, which coincides with the lower boundary of the recent trading channel. A break below this could send the stock down to $275, where a prior demand zone may attract buyers. Volume has also ticked higher during the rebound, which adds credence to the potential continuation of upward price movement — at least in the short term.
TSLA stock price dynamics (April 2025 - June 2025). Source: TradingView
Adding to the technical picture, the Bollinger Bands have begun to widen after a period of contraction, indicating that a volatility expansion phase may be underway. The price has moved back above the midline of the Bollinger Bands, suggesting improving bullish sentiment. Moreover, the MACD (Moving Average Convergence Divergence) histogram has just crossed above the zero line, while the MACD line remains above the signal line — both signs of bullish momentum gaining strength.
Cathie Wood’s conviction meets policy-driven risk
Tesla continues to sit at the intersection of innovation and controversy. Cathie Wood, the CEO of Ark Invest, reiterated her view this week that if she could only pick one stock to own, it would be Tesla. She underscored her confidence in the company’s future, with a target price of $2,600 by 2029. Her case rests on the expected growth of Tesla’s energy storage division, the deployment of Optimus humanoid robots, and the advent of fully autonomous robotaxi services.
This optimism stands in contrast to the challenging macro environment Tesla is navigating. Political and social headwinds remain a drag on sentiment. CEO Elon Musk has become a polarizing figure, prompting calls for boycotts and criticism in both U.S. and European markets. In May, Tesla's EV market share declined notably in Germany and France, impacted in part by both policy changes and shifting consumer preferences.
Additionally, the political landscape in the U.S. poses risks. There is reason to believe that Trump may end or cut subsidies for electric cars, which have been vital to maintaining domestic demand. This introduces substantial downside risk for Tesla, which has leveraged those credits to maintain aggressive pricing and growth strategies. Regulatory threats, alongside increasing competition from Chinese EV makers like BYD and Nio, further complicate Tesla’s medium-term prospects.
Rebound toward $305, but medium-term upside capped
In the short term, Tesla’s technicals point toward a likely move to retest the $305 resistance level. A daily close above that level would clear the path to $320, especially if broader market sentiment remains risk-on and Nasdaq components continue their current rally. However, this upside scenario is contingent on volume confirmation and stable macro news flow.
In the event of a failure at $305, Tesla could pull back to its $290 support. A break below this threshold would indicate bearish sentiment returning, with a likely descent to $275 and even $265 if macro headlines turn negative.
Investors are closely watching Tesla’s June 12 robotaxi launch in Austin, though expectations remain modest due to regulatory hurdles and limited scale. Nonetheless, early success or positive feedback could lift sentiment and renew confidence in Tesla’s autonomous ambitions.
