Tesla stock gains 4.6% as shares rebound from $282 low amid AI hopes
Investor interest in AI-driven companies has surged
As of June 10, Tesla stock is trading at $308.58, up 4.6% in the past 24 hours.
This marks a notable recovery following a steep drop last week that saw shares retreat from the $350 level to below $285.
Highlights
- Tesla stock rose 4.6% to $308.58, bouncing back from last week’s sell-off.
- Technical resistance lies at $320, with support at $295 and $275.
- Market sentiment is mixed, driven by AI optimism and political uncertainties surrounding Elon Musk.
Tesla (NASDAQ: TSLA) has rebounded decisively from a low of $281.95 set during the previous session. The stock opened at $285.73 and surged as high as $315.58 before settling at $308.58. The intraday volume reached over 140 million shares, indicating heightened interest from traders and institutional investors alike.
From a technical standpoint, Tesla is now trading just under the 50-day simple moving average (SMA) at around $310. This level is acting as the immediate resistance zone, and a daily close above it could confirm a short-term bullish reversal. The next target would be the $320-$325 area, aligning with the upper boundary of a descending channel formed since the April highs. A breakout beyond $325 would open the door for a retest of the $355 resistance, which marked the peak before last week's sell-off.
TSLA stock price dynamics (April 2025 - June 2025). Source: TradingView
On the downside, initial support lies near $295. A more critical level is $275, coinciding with the 200-day moving average. A breakdown below this threshold would likely trigger further selling pressure, potentially targeting the $255 zone seen in February. The Relative Strength Index (RSI) is at 59, approaching the neutral-to-bullish threshold but not yet overbought. Meanwhile, MACD has printed a bullish crossover, supporting the near-term upside bias.
Political risk and AI narrative dominate sentiment
The rebound comes in the wake of a controversial downgrade from Baird analyst Ben Kallo, who revised Tesla from "Outperform" to "Neutral" while maintaining a $320 price target. The downgrade cited increasing execution risk around Tesla's autonomous vehicle strategy and the upcoming robotaxi unveiling. Kallo emphasized that while Tesla remains a long-term AI leader, the short-term narrative has been muddied by political distractions and leadership turnover.
Indeed, CEO Elon Musk’s open political advocacy and recent high-profile clash with President Trump over EV policies have created new uncertainties. Investors are concerned that Tesla’s access to federal contracts, subsidies, and tax incentives could be at risk if political tensions escalate. Additionally, the company recently lost Milan Kovac, head of its Optimus humanoid robotics team. His departure has sparked questions about the progress of Tesla’s AI and robotics initiatives, which Musk has described as the company’s most important long-term bets.
At the same time, the broader equity market has remained supportive, with the Nasdaq Composite hovering near all-time highs. Investor interest in AI-driven companies has surged, giving Tesla a partial tailwind as it seeks to reposition itself not just as an EV maker, but as a robotics and software platform company. However, rising competition from Chinese automakers such as BYD and European EV initiatives may keep pressure on Tesla’s margin outlook through the second half of 2025.
Cautious path upward with sharp triggers possible
In the short term, Tesla stock is likely to consolidate within the $295 to $320 range. A sustained move above $320 would require a catalyst, such as a positive demo of its robotaxi fleet or clearer regulatory support from Washington. Should this materialize, bulls may push the price back toward the $350-$355 zone.
Conversely, failure to reclaim the 50-day average could lead to renewed downside, with $295 and then $275 offering key support zones. Further political controversy or AI-related executive exits could trigger sharper drawdowns, potentially testing the $250 region.
Cathie Wood reaffirmed Tesla as her top long-term pick, citing a $2,600 price target by 2029. Her bullish outlook is based on Tesla’s potential in energy storage, humanoid robotics, and autonomous robotaxi services.
