TLDR
- Tesla stock has risen for seven consecutive trading sessions, adding about 23% over that span and approaching the $440 resistance level from earlier in 2025
- The rally was boosted by CEO Elon Musk’s $1 billion stock purchase, settlement of a California lawsuit, and the Federal Reserve’s quarter-point rate cut
- Tesla is expanding its robotaxi service to Las Vegas after launching the paid pilot program in Austin, Texas in June
- Second quarter results showed mixed momentum with total revenue falling 12% to $22.5 billion while energy storage margins improved to 30.3%
- The stock’s future depends heavily on whether Tesla’s autonomous driving technology can scale from pilot programs into profitable networks
Tesla stock is riding a seven-day winning streak that has investors watching the $440 level carefully. The electric vehicle maker’s shares climbed 1.6% to $432.50 in premarket trading Thursday.
Coming into Thursday’s session, Tesla had gained about $79, or 23%, over seven consecutive trading days. This marks the stock’s fourth run gaining more than 20% in seven days since March.
Several factors drove the recent surge. CEO Elon Musk’s $1 billion stock purchase, disclosed Monday, provided a boost. A Reuters report that Tesla settled a California lawsuit over its driver assistance technology also helped.
The Federal Reserve’s quarter-point interest rate cut Wednesday aided the rally. Lower rates reduce monthly car payments, which benefits auto companies since many vehicles are financed.
Tesla appears ready to expand its robotaxi service to Las Vegas. The company launched its long-awaited robo-taxi service in Austin, Texas, in June with a paid pilot program.
Technical Picture Shows Key Resistance Ahead
Market technician Frank Cappelleri from CappThesis sees Tesla approaching important resistance. The stock is nearing the $440 level, which was the mid-January high.
“Tesla is approaching the top of its trading range from earlier in 2025, near $440,” Cappelleri said. This level represents key resistance where investors have sold stock in the past.
On the downside, Cappelleri notes limited nearby support after the seven-day run. The stock recently broke above the $355 to $360 zone, which would be the next level to watch if shares decline.
Coming into Thursday, Tesla stock was up about 5% year to date and 87% over the past 12 months.
Mixed Second Quarter Results Tell Complex Story
Tesla’s second quarter results through June showed the push and pull across its businesses. Total revenue fell 12% year over year to $22.5 billion as automotive sales cooled.
Energy storage remained a bright spot. The energy generation and storage gross margin rose to 30.3% from 24.6% a year ago on lower unit costs.
Automotive margins faced pressure. Tesla’s combined gross margin for automotive and services segments fell to 15.4% from 17.1% a year earlier. Lower prices and reduced regulatory credit revenue drove the decline.
Research and development expenses climbed sharply as the company invests in artificial intelligence and autonomy. R&D reached about 7% of revenue versus roughly 4% a year ago.
Tesla maintained strong liquidity with $36.8 billion in cash, cash equivalents, and investments. Operating cash flow of $4.7 billion in the first half of 2025 supported this robust balance sheet.
Deferred revenue tied primarily to Full Self-Driving features rose to $3.75 billion at quarter-end. This represents obligations to deliver future capability that investors expect.
The company’s market value implies a price-to-sales multiple of about 15 on trailing revenue of roughly $93 billion. This appears rich for a manufacturer with compressing auto margins unless autonomy takes off.
Tesla’s next 12 months will largely depend on whether autonomous driving turns from promise into profitable reality. The range of outcomes remains unusually wide for investors willing to make this speculative bet.
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