TLDR
- Tesla stock has returned to IBD Leaderboard after breaking above 10-week moving average
- Company launched new Model Y L in China priced at $47,200 to combat local competition
- Wall Street forecasts 73% earnings spike and 20% sales growth for Q1 2026
- Stock forms flat base pattern with $367.71 buy point after finding support at 40-week average
- China sales fell 8.4% in July as competitors like Xiaomi challenge Tesla’s market dominance
Tesla stock has climbed back into favor after months of decline. The electric vehicle maker rejoined the Investor’s Business Daily Leaderboard alongside Nvidia.
The stock now trades above its 200-day moving average. It found support at the 40-week line after a long slide.
Tesla launched its new Model Y L in China this week. The vehicle starts at approximately $47,200.
BREAKING: Tesla has officially introduced the Model Y L in China.
• Starting price: 339,000 yuan ($47,000 USD)
• Range: 527 miles (CLTC). 327 miles EPA (estimate)
• 4.5s 0-62mph
• 89.6cubic feet of storage
• Deliveries start September 2025 in China pic.twitter.com/xDU9RZkDoZ— Sawyer Merritt (@SawyerMerritt) August 19, 2025
China represents Tesla’s largest market outside the United States. The company needs to regain momentum there after recent setbacks.
Sales of China-made Tesla vehicles dropped 8.4% in July. Local competitors have gained ground with cheaper alternatives.
Chinese automaker Xiaomi has entered the market aggressively. Other domestic brands offer feature-rich vehicles at lower prices.
The Model Y became the world’s best-selling car by 2023. That success attracted more competition to the segment.
Technical Recovery Shows Promise
Tesla stock displays improving technical indicators. The 21-day exponential moving average and 50-day line show budding turnarounds.
The stock maintains an A- Accumulation/Distribution Rating. It also shows a 1.2 up/down volume ratio.
Currently 425 A+ rated funds hold Tesla shares. The stock earns a 53 Composite Rating out of 99.
Tesla forms an early stage flat base pattern. The buy point sits at $367.71.
The relative strength line halted its decline. It has started to edge higher in recent sessions.
Growth Outlook Brightens for 2026
Wall Street expects a turnaround in Tesla’s fundamentals. Analysts forecast 73% earnings growth for Q1 2026.
The company should earn 47 cents per share in the first quarter. Revenue is expected to reach $23.3 billion, up 20%.
Second quarter 2026 projections show 35% earnings growth. Sales should increase 12% to $25.2 billion.
Tesla continues expanding beyond vehicle manufacturing. The company operates battery storage and AI robotics divisions.
Major automakers seek access to Tesla’s Supercharger network. Ford, GE Aerospace, and Rivian have all made moves to partner.
Tesla also prepares to launch a longer-range Model 3 in China. The move gives customers more options in the competitive market.
The Model Y L launch represents Tesla’s response to market pressure. Success could reverse the July sales decline.
Wall Street analysts maintain mixed views on Tesla. The consensus rating stands at Hold based on 37 reviews.
Fourteen analysts rate the stock a Buy. Fifteen recommend Hold while eight suggest Sell.
The average 12-month price target sits at $307.23. This represents an 8.33% downside from the current $335.16 closing price.
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