Tesla (TSLA) Rallies 40% Post-Q1 Earnings—Here’s Why the Rally Isn’t Done Yet
Tesla’s stock defies gravity—again. After a brutal 2022, TSLA surges 40% since Q1 earnings, leaving short sellers scrambling and Elon stans crowing. But this isn’t just meme-stock mania.
Battery breakthroughs (finally) delivering: New dry-coating tech slashes production costs by 50%—just as Cybertruck ramps hit stride. Analysts whisper ’profitability tsunami’ by Q3.
China plays ball: Beijing quietly extends EV subsidies through 2026, with Tesla as the only foreign OEM getting ’preferred partner’ status. Cue the tariff-dodging champagne.
Short squeeze 2.0: Over 18% of float still shorted. When will hedge funds learn? Probably around the time their ’TSLA=0’ thesis gets torched like another Twitter acquisition.
One cynical footnote: If this rally holds, maybe Elon can afford to buy another social media platform—this time without selling TSLA shares.
Tesla Robotaxi to Give TSLA Shares Another Boost?
Furthermore, back in 2025, Tesla CEO Elon Musk promised several big updates for the EV maker. Six years ago, Elon Musk promised the arrival of robotaxis for the first time. He raised billions of dollars, with the CEO projecting the arrival in 2020. That did not come to pass. However, Tesla has pushed that launch date back to June 2025, which will see the product arrive next month. Although it WOULD be half a decade late, its timing may be unrivaled.
The robotaxi would be a clear statement to that effect. Moreover, it would precede the arrival of the company’s Optimus robots. At his most recent earnings call, Musk promised they would have around 10-20 vehicles on the road. Although it may be late, it could coincide with macroeconomic sentiment that has share prices nearing a bull-case projection of $470 in 2025.
Analysts at CNN say that Tesla (TSLA) is trading in the middle of its 52-week range and above its 200-day simple moving average. It has plenty of room to continue its recent swing upwards, with $400 serving as a potential next target. Despite that, CNN’s analysts that were surveyed on Tesla stock are mixed. Out of 57 surveyed, 53% suggest buying TSLA stock, while 28% suggest to hold and the remaining 19% are on the sell train.
