TLDR
- Tesla stock surged 6.5% to $370.44, reaching its highest level in 7 months driven by broader market optimism and rate cut expectations
- The company secured a Nevada permit to test driverless Model Y SUVs on public roads, expanding its robotaxi testing beyond Austin, Texas
- Tesla’s six-seater Model Y L sold out in China with over 120,000 orders, though deliveries are now pushed to November
- Wells Fargo warns Q3 deliveries could fall short despite recent momentum, maintaining an ‘Underweight’ rating with $120 price target
- Technical indicators show bullish momentum with a golden cross formation, but RSI approaching overbought territory near 70
Tesla shares jumped over 6% to close at $368.81 on Thursday, marking the stock’s highest level since February. The electric vehicle maker benefited from broader market strength as inflation data reinforced expectations for upcoming Federal Reserve rate cuts.
The rally represents a continuation of recent momentum for the Austin-based company. Tesla stock has broken above the key $350 resistance level that had capped gains for months.
Market conditions played a major role in Thursday’s gains. Inflation data came in line with expectations, strengthening the case for lower interest rates ahead. Auto purchases typically rely on financing, making Tesla sensitive to rate movements.
The S&P 500 gained 0.9% while the Dow Jones Industrial Average added 1.4%. Tesla rode the wave higher alongside other growth stocks that benefit from easier monetary policy.
Autonomous Driving Expansion
Tesla secured a Nevada permit to test driverless Model Y SUVs on public streets. The approval expands the company’s robotaxi testing beyond its current operations in Austin, Texas.
Nevada officials confirmed the testing approval but emphasized Tesla still needs additional clearance before launching full commercial service. Elon Musk has promised ride-hailing could reach half the U.S. population by year-end if regulators approve.
The company has been offering pilot robotaxi rides in Austin as part of its push toward fully autonomous vehicles. The Nevada expansion represents another step in Tesla’s broader autonomy strategy.
Technical indicators support the current rally. The stock’s 50-day moving average crossed above the 200-day moving average, forming a golden cross pattern that often precedes sustained rallies.
Volume surged on the up day, confirming strength behind the move. The Relative Strength Index approached 70, indicating the stock is nearing overbought territory but still has room to run before a pullback.
Support now sits at the $340 level. A breakdown below that could signal a reversal of the current uptrend.
China Market Momentum
Tesla’s six-seater Model Y L sold out in China with deliveries pushed back to November. The variant reportedly racked up more than 120,000 orders in the company’s most competitive market.
Tesla Model Y L will begin deliveries to customers starting today. pic.twitter.com/jtP6C5bmyD
— Aaron Li (@boolusilan) September 1, 2025
Tesla trimmed the price of its Model 3 Long Range sedan by 3.7% as rivals like Xpeng increased pressure with cheaper offerings. Despite pricing cuts, Tesla’s insured registrations in China rose 41% last quarter.
The China performance suggests buyers are returning despite intensifying competition from local manufacturers. Tesla’s market share in the U.S. EV space has fallen to 38%, its lowest level in years.
Wells Fargo analyst Colin Langan warned Tesla’s August deliveries across three major markets fell 9% year-over-year. The rebound may not prevent third-quarter numbers from falling short of expectations.
Wells Fargo maintained an ‘Underweight’ rating with a $120 price target, implying 67% downside from current levels. The firm cited concerns about delivery momentum despite recent gains.
Tesla trades at nearly 140 times projected 2026 earnings, far above the Magnificent Seven average of 29 times. The premium valuation has made Tesla one of Wall Street’s most divisive names.
Analyst price targets stretch across nearly a 100% range according to recent reports. About 80 million Tesla shares are sold short, equal to roughly 3% of tradable stock.
Short interest remains higher than the 1% seen across other big-tech peers. The figure has not changed meaningfully in recent months despite the stock’s rally.
Tesla launched its streamlined Megapack 3 and Megablock energy storage systems this week. The Megablock’s integrated design promises to slash installation time by 23% and costs by nearly 40%.
Tesla stock has declined 8.7% year-to-date despite Thursday’s gains. The company continues expanding its robotaxi testing with the new Nevada permit allowing driverless Model Y operations on public roads.
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