Tesla Soars 18% in September 2025 as Musk’s $1 Trillion Pay Package Proposal Fuels Rally

• Why Are Tesla and Micron Suddenly in Overbought Territory?
• Micron's Memory Chip Miracle: How High Can It Go?
• Musk's $1 Trillion Gamble: Genius or Madness?
• The Fed Factor: How Rate Cuts Could Reshape the Rally
• FAQ: Your Burning Questions Answered

In a market-defying move, Tesla shares have skyrocketed 18% this month following the bombshell announcement of a proposed $1 trillion compensation package for CEO Elon Musk. This comes amid a broader tech rally that's pushed both Tesla and Micron into overbought territory, with their Relative Strength Indexes (RSI) hitting worrying levels of 75.6 and 81.2 respectively. As investors await the Fed's next move, we break down why these stocks might be primed for a pullback, how Micron's 2020-level gains are shaking up the semiconductor sector, and what Musk's unprecedented pay package means for Tesla's future.

Why Are Tesla and Micron Suddenly in Overbought Territory?

The S&P 500's 1.6% weekly gain has created some surprising winners - and potential losers. According to TradingView data, both Tesla and Micron now sport RSIs above the critical 70 threshold that typically signals excessive buying. Micron's eye-popping 81.2 RSI comes after a 20% weekly surge, its biggest since the COVID-era rally of March 2020. Tesla's 75.6 reading follows its 18% monthly gain, supercharged by Musk's compensation news. "These levels suggest both stocks are drinking from the same punchbowl," notes BTCC analyst Mark Chen. "History shows that when the RSI party gets this wild, the hangover tends to be brutal."

Micron's Memory Chip Miracle: How High Can It Go?

Micron's spectacular run deserves its own highlight reel. The chipmaker's 20% weekly jump came courtesy of Citi's bullish $175 price target (11% above Friday's close), with analyst Christopher Danely predicting "better-than-expected demand" from data centers (55% of Micron's revenue). The memory chip sector's renaissance has been nothing short of remarkable - since April, $14 trillion has flooded into equities, with Micron riding the wave. But here's the rub: that 81.2 RSI suggests the music might stop soon. Smart money is watching September 23 closely, when Micron reports F4Q25 results. "This earnings call could be the pin that pops the bubble," warns Chen. "Traders sitting on 20% gains won't think twice about cashing out."

Musk's $1 Trillion Gamble: Genius or Madness?

Let's talk about the elephant in the room - Elon Musk's proposed $1 trillion pay package. Yes, you read that right - trillion with a 'T'. While details remain scarce, the mere announcement sent Tesla shares into the stratosphere this month. The timing couldn't be more ironic - just as technical indicators scream "overbought," Musk drops what might be the largest compensation package in corporate history. "It's classic Musk," laughs veteran trader Sarah Williamson. "When everyone expects a pullback, he rewrites the rulebook." The package's structure remains mysterious, but insiders suggest it's tied to achieving unprecedented market cap milestones.

The Fed Factor: How Rate Cuts Could Reshape the Rally

Beneath these individual stock stories lies a broader market truth: everyone's betting on the Fed. With rate cuts expected to resume this Wednesday (potentially 150 basis points over the next year), historical data suggests we could see the S&P 500 gain 15% in the subsequent year. But there's a catch - unemployment just hit 2021 highs, creating what Powell might call a "complicated picture." Small caps (Russell 2000 up 7.5% YTD) could benefit more from rate cuts than megacaps like Tesla and Micron. "It's a tug-of-war between momentum and fundamentals," observes Williamson. "Right now, momentum's winning - but for how long?"

FAQ: Your Burning Questions Answered

What does Tesla's 75.6 RSI mean for investors?

An RSI above 70 typically indicates overbought conditions, suggesting Tesla might be due for a short-term pullback. However, strong catalysts (like Musk's pay package) can override technical indicators.

Why did Micron stock surge 20% this week?

Citi's upgraded price target to $175 and expectations of strong memory chip demand (especially from data centers) drove the rally. The stock hasn't seen this kind of weekly gain since March 2020.

How unusual is a $1 trillion compensation package?

Unprecedented. While exact details aren't public, no major CEO has ever had a compensation package measured in trillions. It likely involves extraordinary performance milestones.

What's the connection between Fed rate cuts and tech stocks?

Lower rates typically benefit growth stocks like Tesla and Micron by reducing discount rates on future earnings. However, the current rally suggests much of this Optimism is already priced in.

Should investors be worried about Micron's 81.2 RSI?

Caution is warranted. While fundamentals appear strong, such extreme RSI readings often precede pullbacks, especially before earnings reports.