Tesla stock gains 1.1% as Cathie Wood buying lifts outlook ahead of Q2 earnings
Global trade tensions add uncertainty for Tesla’s manufacturing and supply chains
As of July 15, Tesla stock is trading at $316.90, up 1.1% over the past 24 hours.
The stock is climbing modestly after reaching an intraday low of $312.87 and a high of $322.44.
Highlights
- Tesla is trading near $317 after a 1.1% gain, approaching key resistance at $326.
- Investor sentiment is improving due to AI integration, the robotaxi rollout, and Cathie Wood’s recent share purchases.
- Upcoming Q2 earnings on July 23 will be critical in determining whether the stock breaks higher or retests support around $300.
This movement reflects growing optimism among investors following recent AI-driven developments within Elon Musk’s broader business ecosystem. Tesla has now rebounded nearly 33% from its April lows, moving off a key consolidation base near the $300–$310 range. From a technical standpoint, Tesla is sitting just below its 50-day moving average, currently around $326. This level has acted as a soft ceiling over the past several sessions, and a decisive break above it would likely attract momentum-driven buyers.
The next resistance lies near $350, with a longer-term pivot target around $367.71, as identified by Investor’s Business Daily. On the downside, support remains firm at the $300 level, followed by the 200-day moving average at $280, which acted as a springboard during the stock’s early summer rebound. Tesla’s technical indicators reflect a balanced momentum setup. Its Relative Strength Index (RSI) is hovering near neutral territory, while volume has been trending slightly higher on up-days, indicating modest accumulation.
Tesla stock price dynamics (May 2025 - July 2025). Source: TradingView
The stock’s Composite Rating, as tracked by IBD, is in the mid-50s, suggesting room for improvement, but the Relative Strength and EPS Ratings remain above 80, showing that Tesla continues to outperform many peers in the broader tech and auto sectors. That said, the stock’s recent gains must be evaluated within the broader context of market sentiment and upcoming catalysts.
Investor sentiment, AI tailwinds, and governance concerns
Tesla’s current rally is not only technical—it’s also fundamentally tied to a broader realignment of Elon Musk’s companies. A pivotal development was SpaceX’s $2 billion investment into xAI, Musk’s artificial intelligence venture, and the subsequent integration of the Grok chatbot into Tesla vehicles. ARK Invest’s Cathie Wood recently purchased over 59,000 Tesla shares, a move that underscores long-term confidence in Musk’s strategy, even as she reiterated a $2,600 price target for 2029.
However, sentiment remains divided. While some investors are embracing Tesla as a next-gen AI platform, others remain cautious due to governance risks. Musk’s expanding influence across multiple ventures—including Tesla, X, xAI, Neuralink, and SpaceX—raises questions about leadership bandwidth and fiduciary responsibility. Critics like Wedbush analyst Dan Ives have voiced concern over what they call a "Musk soap opera," emphasizing the need for board intervention and strategic clarity.
External factors also complicate the picture. Global trade tensions, particularly involving tariffs between the US, Mexico, and the EU, add uncertainty for Tesla’s manufacturing and supply chains. At the same time, the broader market’s focus on AI has helped divert attention from near-term delivery concerns, offering Tesla a chance to benefit from the ongoing tech rotation.
Short-term scenarios and price projection
Looking ahead, the next major catalyst is Tesla’s Q2 earnings report, scheduled for July 23. Expectations are mixed: investors will be looking for clarity on margins, vehicle ASPs (average selling prices), and updates on the robotaxi initiative in Austin. If Tesla exceeds revenue and EPS expectations while providing a strong AI-focused outlook, the stock could break decisively above the $326 resistance and target the $350–$367 range within the next 3 to 4 weeks.
In a more bullish scenario, continued momentum from AI developments and robust Q2 results could push Tesla toward the December 2023 highs, potentially above $400 over a two-month horizon. Conversely, if Q2 earnings disappoint or political distractions escalate, Tesla could retest the $300 level and even fall toward its 200-day moving average near $280.
Tesla’s European sales fell nearly 50% in April, signaling rising local competition and potential fallout from Elon Musk’s controversial public image. As a result, analysts at Wedbush and Piper Sandler have lowered their short-term outlooks, pointing to political distractions and weakening deliveries.
