Tesla Stock (TSLA) Jumps 13% – Buyers on Our Prediction Yesterday Have Locked Profit
Yesterday we suggested that the decline in the Tesla stock is over and today we saw a 13% surge with the price gaining $33.
Strong Support at $220 Triggers a Rebound
Tesla stock has staged a powerful comeback, surging 13% today after testing the $220 support zone twice over the past two weeks. The inability to break below this key level signaled strong buying interest, reinforcing a bullish reversal pattern. Additionally, the formation of two pin candlesticks on the weekly chart further indicated a shift in momentum, suggesting that the selloff had reached exhaustion.
Broader Market Factors Boost Confidence for Tesla
Tesla’s decline of over 50% from its all-time high of $488 in December 2024 came amid a broader market downturn, with the S&P 500 and Nasdaq dropping nearly 10% in recent weeks. However, the Federal Reserve’s dovish stance last week helped stabilize financial markets, providing a tailwind for risk assets, including Tesla. Adding to the optimism, US President Donald Trump signaled a softer stance on tariffs, confirming that reciprocal trade measures would be limited to around 15 countries. This reassured investors who had been concerned about further disruptions to supply chains and global trade.
Musk’s Optimism and Wall Street’s Outlook
At last week’s staff meeting, Elon Musk advised Tesla employees to “hold on” to their stock, arguing that Wall Street underestimates Tesla’s long-term value. He pointed to advancements in Tesla’s self-driving technology and upcoming projects, such as the Optimus humanoid robot, as major growth drivers.
Investment firm Piper Sandler also remains bullish on Tesla, stating that concerns over brand damage and declining demand are overblown. The firm attributes Tesla’s weak first-quarter delivery numbers to supply-side constraints, particularly factory shutdowns that affected Model Y production. Analysts highlight that demand remains strong, and with new vehicle models and a robo-taxi launch expected, Tesla continues to be rated “Overweight,” with a price target near its December high of $450.
Tesla Closes Above $280 – Is More Upside Coming?
With multiple bullish signals aligning, Tesla stock closed above $280 today, reinforcing the view that the recent decline was a temporary pullback. If market sentiment remains positive and Tesla continues to execute on its long-term strategy, further gains toward $300 and beyond could be on the horizon.
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals