Shares of the EV maker rally on expectations of Fed rate cuts, tech sector strength, and renewed faith in robotics and autonomous driving.
Tesla’s stock is making a strong comeback, narrowing its 2025 losses after a volatile start to the year. Shares have gained 10% so far this month and added another 6% in today’s trading, lifting the stock to around $392—close to its year-end 2024 level of $404.
The rebound is significant for a company that earlier this year lagged behind its peers in the “Magnificent 7” tech group. Alongside Apple, Tesla was one of the few major names still in the red at midyear, trailing the S&P 500 and Nasdaq.
Broader market dynamics are playing a role in the stock’s rise. Investors are betting on an expected Federal Reserve interest rate cut next week, which could bolster growth-focused tech firms. Optimism around second-quarter earnings has also eased some concerns about the broader U.S. economy.
Tesla-specific factors are also driving momentum. Investor enthusiasm for robotics and autonomous driving potential, along with reduced political tension between CEO Elon Musk and President Donald Trump, has improved sentiment. In addition, Tesla’s board recently backed a new compensation package for Musk, addressing doubts about his long-term commitment to the company.
Still, Wall Street remains cautious. The average analyst price target stands near $327, well below current levels, with ratings split between bullish, neutral, and bearish. For now, however, investor optimism is carrying Tesla closer to break-even for the year.
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