Tesla’s
stock continues its impressive recovery trajectory, climbing 0.51% during
Tuesday’s trading session to test an intraday high of $354.99, its highest
level in three months. The electric vehicle maker’s shares (NASDAQ: TSLA)
ultimately closed at $343.82, marking a remarkable 60% gain from April’s lows.
This
resurgence comes as investors digest Elon Musk’s latest revelations about
Tesla’s AI strategy and its relationship with semiconductor powerhouses.
Tuesday’s
test of the $354.99 level pushed Tesla back to its highest price in three
months, with growing optimism now surrounding the company.
Tesla’s
stock has rebounded more than 60% from the lows seen last month and in March,
significantly increasing its chances of returning to the area of the all-time
highs last tested in December near the $475 mark.
Tesla stock price today. Source: TradingView.com
But why is
Tesla’s stock rising? Let’s take a closer look.
Why Is Tesla Stock Up
Today? AI Developments
During a
wide-ranging interview with CNBC’s
David Faber on Tuesday, Elon Musk outlined ambitious plans for his AI
ventures that appear to be catalyzing Tesla’s stock performance. The Tesla CEO
confirmed that both Tesla and his AI company xAI will continue purchasing chips
from industry leaders Nvidia and AMD, potentially alleviating concerns about
supply chain disruptions.
Elon Musk appeared on CNBC earlier today — enjoy watching at your convenience! $TSLA #ELON pic.twitter.com/J1Wanmfm5Z
— Henry Chung (@positivecarry88) May 20, 2025
“A few
years ago, I made a very obvious prediction, which is that the limitation on AI
will be chips,” Musk stated during the interview. This acknowledgment of
continued partnerships with established chip manufacturers provides stability
to Tesla’s AI roadmap, which has become increasingly central to the company’s
valuation narrative.
Musk
revealed that xAI has already installed 200,000 GPUs at its Colossus facility
in Memphis, Tennessee, making it what he described as “the most powerful
training cluster in the world right now.” Even more ambitious is the
company’s plan to build a 1 million GPU facility outside Memphis, signaling the
scale of Musk’s AI aspirations.
The Tesla-xAI
Relationship: Potential Synergies
While Musk
indicated there are no immediate plans to merge Tesla and xAI, he notably
didn’t rule out the possibility, stating it’s “not out of the
question” and would “obviously require Tesla shareholders
support.” This openness to potential integration has sparked speculation
among retail investors about future synergies between the companies.
The
relationship between Tesla and xAI is already substantial. Tesla recently
disclosed in a financial filing that xAI spent approximately $191 million in
2024 and an additional $36.8 million through February 2025 on Tesla Megapacks, the
company’s utility-scale energy storage systems. This cross-pollination between
Musk’s ventures creates a compelling narrative for investors who see value in
the “Muskonomy” ecosystem.
Global Competition: U.S.
vs. China
Musk’s
comments on the global AI race add another dimension to Tesla’s investment
thesis. He noted that China’s investments in power generation currently exceed
those by the United States, though he believes the U.S. maintains an
“advantage in breakthrough innovation.”
“I
think it’s somewhat of a cultural thing, which is that to have breakthrough
innovation you have to question authority,” Musk observed.
“Fundamentally, you’re questioning the conventional wisdom when you do a
breakthrough innovation.” This perspective suggests that despite
infrastructure challenges, Tesla and other U.S. companies may maintain a
creative edge in AI development.
You may also like: How High Can Bitcoin Go, and Why Is BTC Price Up Today? Bullish Technical Analysis Predictions
Tesla Shares Technical
Analysis
The stock’s
technical picture has also improved significantly, with the formation of a
“golden cross,” where the 50-day exponential moving average crosses
above the 200-day exponential moving average. This technical pattern is widely
regarded as a strong bullish signal that could attract additional buying
interest in the coming weeks.
According
to my technical analysis, the resistance at the $325 level in May has turned
into support. The price is currently being capped by the 50% Fibonacci
retracement level, drawn from the downtrend that began in December 2024 and
continued through March of this year. A breakout above this level would confirm
that bullish momentum is returning to Tesla’s chart, with the next targets
likely around $380—corresponding to the early 2025 lows—and the 61.8% Fibonacci
retracement level. Beyond that, the price could move toward the $400+ range.
Tesla shares technical analysis chart. Source: TradingView.com
The
recently formed golden cross on the daily chart certainly reinforces this
outlook. The last time such a crossover occurred was in July of last year. Back
then, the price initially pulled back slightly but soon began a strong upward
rally, eventually doubling in value within six months of the signal. Will
history repeat itself? As always, time will tell.
How High Can Tesla Go?
Cathie Wood Precits 800% Jump
In my
recent article on Tesla from nearly two weeks ago, I highlighted Cathie Wood’s
ultra-bullish forecast from ARK Invest, which projects that Tesla shares could
surge by 800%, reaching $2,600. You’ll
also find more reasons there why Tesla’s stock may be rising at this time.
However,
not everyone shares this optimism. While Morgan Stanley has a price target of
$410 per Tesla share, other banks suggest the stock should be trading below its
current level.
Ark Invest CEO Cathie Wood just went on CNBC and reiterated her $2,600 Tesla $TSLA price target by 2030.
I like Cathie, but didn’t she predict $TSLA $3,000 by 2025 a few years ago?
pic.twitter.com/7IjnCkyYl8— Jesse Cohen (@JesseCohenInv) May 9, 2025
Tesla Shares Prediction
2025 Table
|
Analyst/Institution |
Price |
Timeframe |
Rating/Stance |
Key Thesis |
|
Cathie |
$2,600 |
5 years |
Bullish |
90% of value from robotaxis; |
|
Morgan |
$410 |
12 months |
Overweight |
Robotics and “Embodied |
|
Goldman |
$235 |
12 months |
Neutral |
Concerns about tariff impacts on |
|
Barclays |
$275 |
12 months |
Equalweight |
Weak fundamentals and challenges |
|
24/7 Wall |
$352.99 |
12 months |
Bullish |
Revenue growth from $112B (2025) |
What This Means for Tesla Retail
Investors
Tesla’s
stock resurgence reflects an evolving investment narrative that increasingly
emphasizes the company’s position at the nexus of transportation, energy, and
artificial intelligence. While the electric vehicle business remains central to
Tesla’s identity, Musk’s latest revelations highlight how the company’s future
may be equally tied to developments in AI infrastructure and energy solutions.
For
retail traders watching Tesla’s stock, several key factors emerge from these
developments:
- AI
Integration:
Tesla’s value proposition increasingly incorporates AI capabilities beyond
autonomous driving, potentially expanding its addressable market. - Energy
Expertise: The
company’s experience in energy systems could become a competitive advantage as
AI development faces power constraints. - Technical
Momentum: The
formation of a golden cross suggests positive momentum from a technical
analysis perspective. - Musk
Ecosystem: The
interrelationships between Musk’s companies (Tesla, xAI, SpaceX) create
potential synergies that could drive future value. - Regulatory
Risks:
Environmental concerns and regulatory scrutiny remain important considerations
that could impact growth trajectories.
Tesla
represents more than just an automaker, it’s a bet on Musk’s integrated vision
across multiple industries. As the stock continues testing new highs, the
market appears to be rewarding this expansive vision, particularly as
traditional valuation metrics for the automotive sector become less relevant to
Tesla’s hybrid business model.
Tesla News, FAQ Section
What is driving Tesla’s
stock price up today?
Tesla’s
stock is rising due to Elon Musk’s revelations about continued partnerships
with chip makers Nvidia and AMD, ambitious AI infrastructure plans, and
potential synergies between Tesla and xAI. Technical factors like the formation
of a golden cross are also contributing to positive momentum.
How much has Tesla stock
gained since its recent lows?
Tesla stock
has gained over 60% since its April lows, with shares recently testing a
three-month high of $354.99.
Will Tesla and xAI merge
in the future?
While Elon
Musk stated there are no immediate plans to merge Tesla and xAI, he noted it’s
“not out of the question” and would require Tesla shareholder
approval. The companies already have business relationships, with xAI
purchasing Tesla Megapacks for its operations.
What are the main
challenges for Tesla’s AI ambitions?
According
to Musk, the main challenges include chip supply constraints, electrical
equipment limitations, and an impending electricity generation shortage that
could impact AI development as early as mid-2026. Environmental concerns and
regulatory hurdles around power-intensive AI facilities also present
challenges.
What is a “golden
cross” and why is it significant for Tesla stock?
A golden
cross occurs when a shorter-term moving average (the 50-day EMA) crosses above
a longer-term moving average (the 200-day EMA). This technical pattern is
widely regarded as a bullish signal that could attract additional buying
interest from technical traders and momentum investors.
Tesla’s
stock continues its impressive recovery trajectory, climbing 0.51% during
Tuesday’s trading session to test an intraday high of $354.99, its highest
level in three months. The electric vehicle maker’s shares (NASDAQ: TSLA)
ultimately closed at $343.82, marking a remarkable 60% gain from April’s lows.
This
resurgence comes as investors digest Elon Musk’s latest revelations about
Tesla’s AI strategy and its relationship with semiconductor powerhouses.
Tuesday’s
test of the $354.99 level pushed Tesla back to its highest price in three
months, with growing optimism now surrounding the company.
Tesla’s
stock has rebounded more than 60% from the lows seen last month and in March,
significantly increasing its chances of returning to the area of the all-time
highs last tested in December near the $475 mark.
Tesla stock price today. Source: TradingView.com
But why is
Tesla’s stock rising? Let’s take a closer look.
Why Is Tesla Stock Up
Today? AI Developments
During a
wide-ranging interview with CNBC’s
David Faber on Tuesday, Elon Musk outlined ambitious plans for his AI
ventures that appear to be catalyzing Tesla’s stock performance. The Tesla CEO
confirmed that both Tesla and his AI company xAI will continue purchasing chips
from industry leaders Nvidia and AMD, potentially alleviating concerns about
supply chain disruptions.
Elon Musk appeared on CNBC earlier today — enjoy watching at your convenience! $TSLA #ELON pic.twitter.com/J1Wanmfm5Z
— Henry Chung (@positivecarry88) May 20, 2025
“A few
years ago, I made a very obvious prediction, which is that the limitation on AI
will be chips,” Musk stated during the interview. This acknowledgment of
continued partnerships with established chip manufacturers provides stability
to Tesla’s AI roadmap, which has become increasingly central to the company’s
valuation narrative.
Musk
revealed that xAI has already installed 200,000 GPUs at its Colossus facility
in Memphis, Tennessee, making it what he described as “the most powerful
training cluster in the world right now.” Even more ambitious is the
company’s plan to build a 1 million GPU facility outside Memphis, signaling the
scale of Musk’s AI aspirations.
The Tesla-xAI
Relationship: Potential Synergies
While Musk
indicated there are no immediate plans to merge Tesla and xAI, he notably
didn’t rule out the possibility, stating it’s “not out of the
question” and would “obviously require Tesla shareholders
support.” This openness to potential integration has sparked speculation
among retail investors about future synergies between the companies.
The
relationship between Tesla and xAI is already substantial. Tesla recently
disclosed in a financial filing that xAI spent approximately $191 million in
2024 and an additional $36.8 million through February 2025 on Tesla Megapacks, the
company’s utility-scale energy storage systems. This cross-pollination between
Musk’s ventures creates a compelling narrative for investors who see value in
the “Muskonomy” ecosystem.
Global Competition: U.S.
vs. China
Musk’s
comments on the global AI race add another dimension to Tesla’s investment
thesis. He noted that China’s investments in power generation currently exceed
those by the United States, though he believes the U.S. maintains an
“advantage in breakthrough innovation.”
“I
think it’s somewhat of a cultural thing, which is that to have breakthrough
innovation you have to question authority,” Musk observed.
“Fundamentally, you’re questioning the conventional wisdom when you do a
breakthrough innovation.” This perspective suggests that despite
infrastructure challenges, Tesla and other U.S. companies may maintain a
creative edge in AI development.
You may also like: How High Can Bitcoin Go, and Why Is BTC Price Up Today? Bullish Technical Analysis Predictions
Tesla Shares Technical
Analysis
The stock’s
technical picture has also improved significantly, with the formation of a
“golden cross,” where the 50-day exponential moving average crosses
above the 200-day exponential moving average. This technical pattern is widely
regarded as a strong bullish signal that could attract additional buying
interest in the coming weeks.
According
to my technical analysis, the resistance at the $325 level in May has turned
into support. The price is currently being capped by the 50% Fibonacci
retracement level, drawn from the downtrend that began in December 2024 and
continued through March of this year. A breakout above this level would confirm
that bullish momentum is returning to Tesla’s chart, with the next targets
likely around $380—corresponding to the early 2025 lows—and the 61.8% Fibonacci
retracement level. Beyond that, the price could move toward the $400+ range.
Tesla shares technical analysis chart. Source: TradingView.com
The
recently formed golden cross on the daily chart certainly reinforces this
outlook. The last time such a crossover occurred was in July of last year. Back
then, the price initially pulled back slightly but soon began a strong upward
rally, eventually doubling in value within six months of the signal. Will
history repeat itself? As always, time will tell.
How High Can Tesla Go?
Cathie Wood Precits 800% Jump
In my
recent article on Tesla from nearly two weeks ago, I highlighted Cathie Wood’s
ultra-bullish forecast from ARK Invest, which projects that Tesla shares could
surge by 800%, reaching $2,600. You’ll
also find more reasons there why Tesla’s stock may be rising at this time.
However,
not everyone shares this optimism. While Morgan Stanley has a price target of
$410 per Tesla share, other banks suggest the stock should be trading below its
current level.
Ark Invest CEO Cathie Wood just went on CNBC and reiterated her $2,600 Tesla $TSLA price target by 2030.
I like Cathie, but didn’t she predict $TSLA $3,000 by 2025 a few years ago?
pic.twitter.com/7IjnCkyYl8— Jesse Cohen (@JesseCohenInv) May 9, 2025
Tesla Shares Prediction
2025 Table
|
Analyst/Institution |
Price |
Timeframe |
Rating/Stance |
Key Thesis |
|
Cathie |
$2,600 |
5 years |
Bullish |
90% of value from robotaxis; |
|
Morgan |
$410 |
12 months |
Overweight |
Robotics and “Embodied |
|
Goldman |
$235 |
12 months |
Neutral |
Concerns about tariff impacts on |
|
Barclays |
$275 |
12 months |
Equalweight |
Weak fundamentals and challenges |
|
24/7 Wall |
$352.99 |
12 months |
Bullish |
Revenue growth from $112B (2025) |
What This Means for Tesla Retail
Investors
Tesla’s
stock resurgence reflects an evolving investment narrative that increasingly
emphasizes the company’s position at the nexus of transportation, energy, and
artificial intelligence. While the electric vehicle business remains central to
Tesla’s identity, Musk’s latest revelations highlight how the company’s future
may be equally tied to developments in AI infrastructure and energy solutions.
For
retail traders watching Tesla’s stock, several key factors emerge from these
developments:
- AI
Integration:
Tesla’s value proposition increasingly incorporates AI capabilities beyond
autonomous driving, potentially expanding its addressable market. - Energy
Expertise: The
company’s experience in energy systems could become a competitive advantage as
AI development faces power constraints. - Technical
Momentum: The
formation of a golden cross suggests positive momentum from a technical
analysis perspective. - Musk
Ecosystem: The
interrelationships between Musk’s companies (Tesla, xAI, SpaceX) create
potential synergies that could drive future value. - Regulatory
Risks:
Environmental concerns and regulatory scrutiny remain important considerations
that could impact growth trajectories.
Tesla
represents more than just an automaker, it’s a bet on Musk’s integrated vision
across multiple industries. As the stock continues testing new highs, the
market appears to be rewarding this expansive vision, particularly as
traditional valuation metrics for the automotive sector become less relevant to
Tesla’s hybrid business model.
Tesla News, FAQ Section
What is driving Tesla’s
stock price up today?
Tesla’s
stock is rising due to Elon Musk’s revelations about continued partnerships
with chip makers Nvidia and AMD, ambitious AI infrastructure plans, and
potential synergies between Tesla and xAI. Technical factors like the formation
of a golden cross are also contributing to positive momentum.
How much has Tesla stock
gained since its recent lows?
Tesla stock
has gained over 60% since its April lows, with shares recently testing a
three-month high of $354.99.
Will Tesla and xAI merge
in the future?
While Elon
Musk stated there are no immediate plans to merge Tesla and xAI, he noted it’s
“not out of the question” and would require Tesla shareholder
approval. The companies already have business relationships, with xAI
purchasing Tesla Megapacks for its operations.
What are the main
challenges for Tesla’s AI ambitions?
According
to Musk, the main challenges include chip supply constraints, electrical
equipment limitations, and an impending electricity generation shortage that
could impact AI development as early as mid-2026. Environmental concerns and
regulatory hurdles around power-intensive AI facilities also present
challenges.
What is a “golden
cross” and why is it significant for Tesla stock?
A golden
cross occurs when a shorter-term moving average (the 50-day EMA) crosses above
a longer-term moving average (the 200-day EMA). This technical pattern is
widely regarded as a bullish signal that could attract additional buying
interest from technical traders and momentum investors.
