Tesla (TSLA) Soars 20%—Buy the Hype or Brace for the Dip?
Elon's electric darling just juiced its stock price by a fifth overnight. Traders are either scrambling to hitch a ride or sharpening their knives for the inevitable correction.
The Bull Case:
Momentum chasers see this as the start of another meme-storm rally. 'Fundamentals? Never heard of 'em,' whispers your inner degenerate gambler.
The Bear Trap:
Short sellers smell blood—Tesla's P/E ratio still looks like a tech bubble fever dream. But betting against Musk has bankrupted smarter folks than you.
The Cynic's Take:
Wall Street analysts suddenly upgrading their price targets? How convenient—just in time for their investment banking arms to unload shares onto retail bagholders. Classic.
Source: Politico
Tesla Continues Impressive Bounce Back: So What Should You Do?
The ongoing volatility that has plagued Wall Street in 2025 has continued this week. The US stock market edged a bit higher Wednesday but was unable to make significant progress upward amid poor economic data. With the interest rate outlook taking center stage, there has been an increase in concern for how the market will respond.
One company that has had a notable bounce back has been Tesla, with a 20% increase in the last 30 days heading into Wednesday; all eyes were on if investors should buy, sell, or hold onto the stock. With its increasingly volatile status entering June, that question has never been as important.
When trading opened Wednesday, the Elon Musk-led company plummeted more than 4.5%. Indeed, it fell below the $330 mark in what was a concerning drop. However, Tesla’s increases over the last month have been driven primarily by Musk’s decisions to leave his post at US President Trump’s Doge Commission and the robotaxi hopes.
Wedbush analyst Dan Ives has reiterated that the stock has a $500 target with a refocused Musk. However, the driving force for its increase hasn’t proven to be the most reliable. The June launch for the autonomous driving product has been called ‘modest’ by Tesla itself.
Moreover, with shares trading at a forward-price-to-earnings (P/E) multiple of 181, now seems like a good time to hold. With so much uncertainty and a high value, buying in appears to be misguided. Additionally, it could devalue with increased risks from a variety of facets. Therefore, waiting for more information is the best route an investor can take with Tesla this month.
