TLDR
- Tesla (TSLA) surged 6% on Friday to $340, becoming the top performer among mega-cap tech stocks after Fed Chair Powell hinted at rate cuts
- Despite Friday’s rally, Tesla remains down over 15% year-to-date, making it the worst-performing “Magnificent Seven” stock in 2025
- The company raised its most expensive Cybertruck price by $15,000 to $114,990, while other models remained unchanged
- Tesla shares are approaching a key technical level of $338 that could signal a breakout according to analysts
- The company launched a limited robo-taxi service in Austin with safety monitors still required, with Musk targeting half of U.S. coverage by end of 2025
Tesla shares jumped over 6% on Friday, closing around $340 as investors cheered Federal Reserve Chair Jerome Powell’s comments about potential interest rate cuts. The electric vehicle maker emerged as the standout performer among the world’s largest technology companies.
The broader market rally lifted Tesla’s stock price for the third consecutive week. Lower interest rates would benefit Tesla by making car financing more affordable for consumers.
The stock’s volatile nature likely amplified Friday’s gains as risk appetite returned to markets. Tesla has a history of sharp price swings that can magnify both positive and negative sentiment.
However, the Friday surge couldn’t mask Tesla’s challenging 2025 performance. The stock has dropped more than 15% year-to-date, earning the dubious distinction of being the worst performer in the “Magnificent Seven” group of mega-cap tech stocks.
Only Apple shares have performed worse among major tech names, declining about 9% this year. Apple faces its own headwinds from tariff concerns and questions about its artificial intelligence progress.
CEO Elon Musk previously warned that Tesla could face “a few rough quarters” ahead. The expiration of EV tax credits in September threatens to dampen demand further.
Price Increases Send Mixed Signals
Tesla recently raised the price of its most expensive Cybertruck variant by $15,000 to $114,990. The “Luxe Package” includes Supervised Full Self-Driving technology and free Supercharger network access.
The company left prices unchanged for its other Cybertruck models at $62,490 and $72,450. These versions don’t include the premium package features.
The selective price increase sparked speculation about Tesla’s strategy. The move could represent a test of demand for bundled services like Full Self-Driving, which typically costs $8,000 as a standalone option.
Technical Breakout Potential
Mark Newton from Fundstrat sees technical importance in Tesla’s current price level. He believes breaking above $338 could signal a meaningful breakout for the stock.
The $338 level represents Tesla’s July highs. The stock has touched this price point several times recently but failed to sustain higher levels.
Newton bases his analysis on chart patterns and market history rather than fundamental factors. His approach focuses on identifying shifts in investor sentiment through technical indicators.
Robo-Taxi Ambitions Take Shape
Tesla launched a limited robo-taxi service in Austin, Texas in June. The pilot program uses a small number of Model Y vehicles serving selected customers in a restricted area.
Human safety monitors still occupy the front passenger seats during rides. The company is taking a cautious approach to the rollout while gathering operational data.
Musk maintains aggressive expansion goals despite the modest start. He stated in July that Tesla robo-taxis could serve half the U.S. population by the end of 2025.
Austin represents less than 1% of the total U.S. population. Scaling to Musk’s target would require massive geographic and operational expansion.
The robo-taxi service represents a key growth opportunity that many investors are watching closely. Self-driving technology could unlock new revenue streams beyond traditional car sales.
Tesla’s global vehicle sales declined approximately 13% year-over-year in the first half of 2025. The company plans to launch a lower-priced Model Y variant to help reverse this trend.
Some analysts suggest other vehicle types might prove more beneficial. Gary Black from Future Fund Active ETF believes a smaller SUV or midsize pickup truck would be more helpful than a cheaper Model Y.
A lower-priced Model Y could potentially cannibalize sales from higher-margin versions. This internal competition might limit the net benefit to Tesla’s overall revenue.
Tesla stock gained 2.9% for the week ending Friday, marking three consecutive weekly advances. The stock was down 0.5% in Monday premarket trading at $338.25.
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