Tesla Stock Surges 24%, as Driverless Push Fuels TSLA Rally
Despite poor Q1 numbers and lower sales, Tesla's stock saw its largest weekly rise in more than a year, rising 24%.
Quick overview
- Tesla stock surged 24% last week, marking its strongest weekly gain in over a year despite disappointing Q1 results.
- The company's Q1 adjusted earnings per share of $0.27 fell short of the $0.42 Wall Street consensus, with revenue also missing expectations.
- Investor optimism was bolstered by Tesla's steady margins, reaffirmation of long-term strategy, and plans for new models.
- A new federal framework for autonomous vehicles further lifted sentiment, positioning Tesla favorably against competitors.
Live TSLA Chart
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Despite poor Q1 numbers and lower sales, Tesla’s stock saw its largest weekly rise in more than a year, rising 24%.
Investors Look Past Q1 Miss as Tesla Rallies Hard
Tesla (NASDAQ: TSLA) closed the week with a stunning 24% gain, defying a drop in first-quarter revenue and earnings. The EV giant’s stock opened at $230 on Monday and climbed steadily, ending the week at $285—with a final 10% surge on Friday alone.
The rally came despite Tesla reporting a Q1 2025 adjusted earnings per share (EPS) of $0.27—well below the $0.42 Wall Street consensus. Revenue also fell short, landing at $19.34 billion versus an expected $21.4 billion. Slowing EV demand and ongoing price cuts were key contributors to the miss, alongside a sharp drop in automotive revenue.
Market Already Priced In Weakness
Investor expectations had already been tempered earlier this month following disappointing vehicle delivery data. As a result, markets were largely prepared for soft earnings—and focused instead on future catalysts.
Tesla managed to hold margins steady, reiterated its long-term strategy, and confirmed plans to introduce new models, all of which helped reassure investors that structural weakness may be temporary. The lack of forward guidance was noted, but largely shrugged off in favor of potential upside from innovation.
TSLA Chart Monthly – Rebounding Off the 50 SMA
The 50 monthly SMA (yellow) held as support
Autonomous Vehicle Momentum Lifts Sentiment
A major boost came midweek when U.S. Transportation Secretary Sean Duffy announced a new federal framework for autonomous vehicles. The relaxed rules allow for certain self-driving cars to operate without traditional equipment like rearview mirrors and streamline the process for reporting minor accidents.
This regulatory shift is expected to benefit American automakers like Tesla, who are racing against Chinese competitors in the autonomous space. Investors interpreted the policy change as a long-term positive for Tesla’s competitive edge, adding fuel to the stock’s late-week momentum.
Outlook: TSLA Resuming the Uptrend
While Tesla still faces real headwinds—especially around EV demand and price competition—the market appears to be positioning for a rebound driven by innovation, regulatory support, and a potential pivot to next-gen vehicle platforms.
For now, the stock’s technical breakout and improving sentiment suggest that investors are betting on Tesla’s resilience, even if the short-term numbers still need catching up.
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