Tesla stock surges 8% as robotaxi launch fuels $1.13 trillion rebound
CEO Elon Musk has long touted autonomous ride-hailing as the cornerstone of Tesla’s long-term value proposition
As of June 24, Tesla stock is trading at $348.68, up 8.2% in the past 24 hours.
The sharp rise follows the company's limited launch of its highly anticipated robotaxi service in Austin, Texas, which has reignited bullish momentum among investors.
Highlights
- Tesla stock surged 8.2% following the limited launch of its robotaxi service in Austin, breaking above key technical levels.
- Momentum indicators signal strength, but the stock is nearing overbought territory with resistance at $365.
- Regulatory uncertainty and valuation concerns could trigger a pullback toward the $300–$315 range.
Tesla’s latest surge marks a significant technical breakout, propelled by high volume and strong momentum indicators. The stock decisively cleared its recent consolidation range, breaking out from a pennant formation that had formed above both the 50-day and 200-day moving averages. This is a classic bullish pattern, often interpreted as a precursor to continued upward movement.
The stock is now trading well above the 50-day moving average at around $285 and the 200-day moving average near $246, confirming medium-term strength. Momentum is strong, with the Relative Strength Index (RSI) climbing above 70, signaling that the stock is entering overbought territory. While this reflects strong demand, it also raises the potential for a short-term pullback or consolidation phase.
TSLA stock price dynamics (April 2025 - June 2025). Source: TradingView
Key resistance levels are now in focus. The $365 zone is the immediate target, representing both psychological resistance and a previous high from earlier this year. Beyond that, a more significant resistance sits at $430, which aligns with Tesla’s late-2023 highs. Support is clearly established at $285, near the breakout zone and the 50-day average.
Optimism tempered by valuation and regulatory concerns
The robotaxi launch has provided the clearest narrative boost to Tesla’s stock in months. CEO Elon Musk has long touted autonomous ride-hailing as the cornerstone of Tesla’s long-term value proposition. The soft launch in Austin, although limited in scope and without regulatory approval just yet, is a tangible step in that direction. Musk has also teased further updates at the upcoming August 8 robotaxi unveiling event, which investors are watching closely.
Market reaction has been broadly positive. Analysts like Dan Ives of Wedbush see the robotaxi development as transformational, projecting that autonomous driving could eventually add trillions to Tesla’s market cap. However, not all voices are as optimistic. UBS has reiterated a "Sell" rating on Tesla with a $215 target, arguing that much of the robotaxi optimism is already priced into the current valuation. They also point to regulatory headwinds, particularly a new Texas law requiring permits for autonomous vehicles, which could complicate Tesla’s rollout plans.
Tesla's valuation has rebounded sharply, with a market cap now back above $1.13 trillion. The stock is up over 60% from its April lows, reflecting strong investor confidence, yet also raising the question of how much further it can run without substantial earnings support from its new ventures.
TSLA eyes $365 breakout, but near-term pullback possible
Given the strong technical breakout and bullish sentiment surrounding the robotaxi launch, Tesla is likely to test the $365 resistance level in the coming sessions. If it breaks above this level with conviction, a run toward $430 is plausible, particularly if additional positive developments emerge in August.
However, given the overbought RSI and uncertain regulatory landscape, a pullback to the $300–$315 zone remains a distinct possibility. Any drop below $285 would invalidate the bullish trend and could trigger a deeper correction.
Tesla has launched a pilot robotaxi service in Austin with 10 to 20 geofenced Model Y vehicles, charging flat-rate fares of $4.20 and operating with safety drivers for now. The company plans to scale quickly to 1,000 vehicles, with broader expansion and full deployment of its Cybercab and Robovan expected by 2026.
