TLDR
- Tesla stock climbed 6.5% to $370.44, hitting a 7-month high on rate cut expectations and market rally
- Company secured Nevada permit for driverless Model Y testing, expanding robotaxi operations beyond Texas
- Tesla’s Model Y L variant sold out in China with over 120,000 orders, deliveries pushed to November
- Technical golden cross formation signals bullish momentum, though RSI nears overbought levels at 70
- Wells Fargo maintains bearish outlook with $120 price target despite recent stock gains
Tesla stock surged 6.5% to $370.44 Thursday, marking its highest level since February as investors bet on Federal Reserve rate cuts and autonomous driving progress.
The electric vehicle giant benefited from broader market optimism following inflation data that reinforced expectations for monetary policy easing. Auto financing costs typically fall when the Fed cuts rates
The Austin-based automaker broke through key resistance at $350 that had capped gains for months. Trading volume surged, confirming strength behind the move as institutional investors returned.
Tesla’s 50-day moving average crossed above the 200-day average, creating a golden cross pattern that technical analysts view as bullish. The Relative Strength Index approached 70, indicating potential overbought conditions.
Nevada Robotaxi Expansion Fuels Optimism
Tesla received approval to test autonomous Model Y vehicles on Nevada public roads. This expands the company’s robotaxi program beyond current operations in Austin, Texas.
Nevada officials confirmed testing permits but emphasized Tesla needs additional regulatory clearance for commercial service. CEO Elon Musk has promised ride-hailing could reach half the U.S. population by year-end.
The autonomous driving push represents a key growth catalyst for Tesla. Investors increasingly value the company as an AI and technology firm rather than just an automaker.
Tesla’s forward price-to-earnings ratio sits near 70 for 2025 estimates and 140 for 2026. This premium valuation significantly exceeds the S&P 500 average and other Magnificent Seven tech stocks.
China Market Shows Strong Demand
Tesla’s six-seater Model Y L completely sold out in China with over 120,000 orders. Deliveries have been pushed back to November due to overwhelming demand in the competitive market.
The company reduced Model 3 Long Range pricing by 3.7% to counter pressure from local rivals like Xpeng. Despite price cuts, Tesla’s insured registrations in China rose 41% last quarter.
This performance comes as Tesla’s U.S. EV market share fell to a multi-year low of 38%. Chinese competitors and legacy automakers have captured increasing market share domestically.
Wells Fargo analyst Colin Langan warned Tesla’s August deliveries across major markets dropped 9% year-over-year. The firm maintains an ‘Underweight’ rating with a $120 price target.
Short interest remains elevated at roughly 3% of tradable shares, higher than 1% seen in other big-tech peers. About 80 million Tesla shares are currently sold short.
Tesla also launched new Megapack 3 and Megablock energy storage systems. The integrated design promises 23% faster installation and 40% lower costs for grid-scale projects.
