TLDR
- Tesla stock surged 23% in seven trading sessions, reaching $432.50 as shares approach $440 resistance level
- Elon Musk’s $1 billion stock purchase and Fed rate cut boosted investor sentiment during the rally
- Robotaxi service expanding to Las Vegas after successful Austin pilot program launch in June 2025
- Q2 revenue dropped 12% to $22.5 billion while energy storage margins improved to 30.3%
- Technical analysts warn $440 represents key resistance with limited downside support after recent gains
Tesla stock extended its winning streak to seven consecutive sessions, climbing 1.6% to $432.50 in premarket trading Thursday. The electric vehicle maker has gained approximately 23% over this impressive run.
The stock now approaches a critical technical level at $440. This price point served as the mid-January 2025 high and represents key resistance where investors previously took profits.
Several catalysts fueled Tesla’s recent surge. CEO Elon Musk disclosed a $1 billion stock purchase on Monday, providing a confidence boost. Tesla also settled a California lawsuit regarding its driver assistance technology, according to Reuters.
The Federal Reserve’s quarter-point rate cut Wednesday further supported the rally. Lower interest rates reduce monthly car payments, benefiting auto companies since many vehicles are financed.
Robotaxi Expansion Drives Long-Term Optimism
Tesla appears ready to expand its robotaxi service beyond Austin, Texas. The company launched its autonomous ride service pilot program in Austin during June 2025, marking a key milestone.
Las Vegas represents the next likely market for Tesla’s robotaxi expansion. This geographic growth could validate the scalability of Tesla’s autonomous driving technology.
The robotaxi business model offers higher profit margins compared to traditional vehicle sales. Success in this area could transform Tesla from an automaker into a technology services company.
Market technician Frank Cappelleri from CappThesis notes Tesla’s approach to the $440 resistance zone. “Tesla is approaching the top of its trading range from earlier in 2025,” he explained.
The stock recently broke above the $355 to $360 support zone during its current rally. This level would provide the next meaningful support if shares decline from current levels.
Mixed Quarterly Results Highlight Business Transition
Tesla’s second quarter 2025 results showed the complex dynamics across its business segments. Total revenue fell 12% year-over-year to $22.5 billion as automotive sales cooled.
Energy storage delivered strong performance with margins expanding to 30.3% from 24.6% previously. This segment benefits from growing demand for grid-scale battery solutions.
Automotive margins faced pressure as Tesla’s combined gross margin for automotive and services fell to 15.4% from 17.1% a year earlier. Price cuts and reduced regulatory credit revenue contributed to this decline.
Research and development expenses surged to 7% of revenue compared to 4% previously. Tesla continues investing heavily in artificial intelligence, autonomous driving, and new product development.
The company maintains strong liquidity with $36.8 billion in cash and investments. Operating cash flow of $4.7 billion in the first half supports continued investment in growth initiatives.
Deferred revenue tied to Full Self-Driving features reached $3.75 billion at quarter-end. This represents future obligations to deliver enhanced autonomous capabilities.
Tesla stock trades at 15 times trailing sales based on roughly $93 billion in revenue. This valuation appears elevated for a traditional automaker unless autonomous driving technology achieves commercial success.
