Tesla (TSLA) shares have surged to their highest levels in over two months, buoyed by positive developments. The rally began late last month when CEO Elon Musk announced during the company’s Q1 earnings call that he would dedicate more time to Tesla and less to other ventures such as “DOGE.” Additionally, Tesla shares received a boost following the announcement of a U.S.-U.K. trade agreement and optimistic remarks about U.S.-China trade talks from Treasury Secretary Scott Bessent and Trade Representative Jamiesen Greer. Despite recovering approximately 40% from last month’s low, Tesla’s stock remains down 26% year-to-date, partly due to concerns over Musk’s involvement with the Trump administration.
Technical analysis reveals that Tesla shares formed a triple bottom between early March and late April, signaling a potential bullish reversal. This was confirmed as the stock broke above its neckline and closed above the significant 200-day moving average (MA). The relative strength index (RSI) indicates bullish momentum without reaching overbought levels, suggesting further upside potential.
Key resistance areas include the $360 mark, near a trendline connecting last year’s November peaks and this year’s February highs. A breakout above this level could propel the stock toward $430, aligning with January’s peaks and the pullback trough after December’s record high. On the downside, critical support lies around $289, where the 200-day MA converges with the triple bottom’s neckline. A breach below this level could see Tesla revisit the $225 support zone.
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