Why is Tesla up today?
Tesla stock grows 2%
Tesla (NASDAQ: TSLA) stock grows 2% today, pulling back from a 40% surge over the past month that was fueled by Elon Musk’s renewed commitment to Tesla and optimism around upcoming innovations.
Musk’s signal that he would spend less time in Washington, D.C. and more on company operations reassured investors earlier in June.
China sales plunge casts shadow over recovery narrative
Tesla’s EV deliveries dropped 13% in Q1, with many bulls attributing the decline to a Model Y refresh that would reignite demand. Yet, registration data from China suggests deeper issues: sales fell 26% in April and early May, sharply diverging from the relatively flat Q1 trend. With Europe sales also weakening, China’s importance as Tesla’s largest growth engine has magnified. The China Passenger Car Association (CPCA) is expected to release updated sales figures soon, and investors appear to be preemptively pricing in disappointing results.
Momentum fueled by robotaxis and Musk’s political pivot faces test
Analyst Dmytro Kharkov highlighted five bullish drivers behind Tesla’s recent rally:-Robotaxi Launch: Musk announced a June 22 unveiling in Austin, igniting hopes for a new revenue stream in autonomous services.
-Analyst Support: Goldman Sachs endorsed Tesla’s autonomous vehicle roadmap, reinforcing long-term earnings potential.
-Musk-Trump Reconciliation: Musk’s softened rhetoric toward Donald Trump helped reduce political headwinds around Tesla’s future.
-Market Momentum: A 5% stock jump on June 10 attracted momentum traders, further lifting sentiment.
-AI & Robotics Strategy: Investor enthusiasm grew around Tesla’s pivot to AI, robotics, and the Dojo supercomputer, positioning it as more than just an EV company.
Kharkov says:
"Tesla has every chance to recover its losses amid improving relations between Musk and Trump. The medium-term outlook also remains bullish."
Still, without a rebound in core EV demand, especially in China, these speculative catalysts may not be enough to sustain the rally. The next CPCA report will be a pivotal moment for Tesla bulls and bears alike.
Recently we wrote that as of June 11, Tesla stock is trading at $326.09, up 5.7% over the past 24 hours.
