Tesla Stock (TSLA) Skyrockets: Here’s Why It’s Soaring Today

Tesla shares just ripped higher—and the momentum isn't letting up. Here’s what’s fueling the surge.

Breaking Down the Rally

Production beats, bullish analyst upgrades, or maybe another Elon tweet storm? Whatever the catalyst, traders are piling in. Volume spiked, shorts got squeezed, and the stock smashed through key resistance levels. Classic Tesla theater.

Market Vibes & Macro Moves

EV sentiment is hot again, crypto’s back in fashion (hello, Bitcoin on the balance sheet), and Tesla’s leading the charge. Even the Fed might be helping—or hurting, depending on which finance bro you ask. Either way, momentum’s the name of the game.

Where It Goes From Here

Tesla’s always been a battleground stock—love it or hate it, you can’t ignore it. Bulls see infinite growth; bears see a valuation that’s… optimistic. One thing’s clear: when TSLA moves, it moves fast. Just ask anyone who’s tried to short it.

So yeah—another day, another double-digit percentage swing. Because why should crypto have all the fun?

The Fed now has to make a decision

The Federal Reserve today received the last of the primary data it will use to decide whether to cut rates (and by how much) at its meeting next week. The CPI report for August was hotter than expected and is now close to a whole percentage point higher than the Fed's target of 2%. Under normal circumstances, that WOULD likely mean the Fed would hold rates steady or consider increasing them.

But the Fed has a dual mandate. Along with keeping inflation low, it must also keep Americans working. These are often opposing goals: Rate cuts boost employment, but spur inflation; rate hikes curb inflation, but cool economic activity and, with it, the job market.

Image source: Getty Images.

The CPI numbers come as the job market is showing signs of weakness. Today's unemployment report makes things look even worse. The Labor Department reported that last week, the number of Americans applying for unemployment for the first time was the highest it's been since October 2021. This number was significantly higher than expected.

Tesla stock is pricey

The jobless claims are likely to win out, with the market very confident that rate cuts are coming. This tends to boost markets, particularly for riskier stocks. With a forward price-to-earnings ratio (P/E) of more than 136, Tesla stock is extremely pricey. That makes it risky, especially as its sales plummet in almost every global market. This is not a stock I would own at this point, not at this price.