TSLA

Tesla (TSLA) stocks responded to the S&P 500 broad barometer's rally, which is approaching the 6,000 points mark again, with a convincing break through a 2-week-long flag pattern above the $360 barrier. The stock now looks like the vanguard of an advanced team of tech assets among other global giants fighting for new price heights in May. Following that jump led by a 6.9% rise on May 27, now the number $420, so mellifluous to the ear of the founder of the EV making company Elon Musk, seems to be a minimally reasonable and only initial target, if we make the simplest possible graphical approximation on Tesla charts, using the so-called "measured move" technique with the vertical flagpole as a measure of scale, which extends from $270 as the low point on May 7 to $350 as an intraday high on May 14, i.e. just one week later.

Tesla's rapid rise to the top looked like an essentially predetermined move during the company's conference call hot on the trail of its quarterly report on the night of April 22-23. And here we would like to especially highlight the prospect of active implementation of robotaxis with deliveries of hundreds of thousands, if not a couple of million robotaxi cars in the next couple of years in the U.S. alone, as well as Tesla cars' relative independence from imported components. The latter factor gives it a huge advantage not only over other car companies, but also among many megacaps, with Apple (APPL) as a very good example, since shares of the iPhone manufacturer are still pressured enough due to its large exposure to production chains in China and trade war costs. Nothing like this is happening with Tesla, since Tesla localized its production in America, Europe and Asia.

Even though Tesla is facing a plunge in sales across its European markets due to protests and boycotts over Elon Musk's political stance, and with the broader electric vehicle market in Europe growing by approximately 28% YoY but declined by nearly half vs last year's records particularly for Tesla, its moving in other parts of the world is spectacular to offset Tesla's shortfall in the EU. Brief factory shutdowns for several weeks to upgrade the plants for its best-selling Model Y sport utility vehicle, also constrained supply but is a strong factor of increasing sales soon. Let's not forget that Tesla would be characterized correctly as a hybrid of an AI leader and an EV leader at the same time, which also manages to make competitors partners by simply providing them with necessary and actually unavoidable infrastructure and batteries.

Wedbush Securities has issued the most bullish call to shift its Tesla’s price target to $500 from recent $350, meaning a nearly 47% upside potential. It is positioning Tesla as “one of the best pure plays on AI for the next decade,” emphasizing the company’s artificial intelligence, robotics and full self-driving (FSD) ambitions as key value drivers. Launching FSD rollout in China just began in Q1, and its expected deployment in Europe will follow, probably in summer, with pending regulatory approval. High-volume production of the Optimus robots is planned for 2026; initial customer deliveries are projected for 2027 to unlock at least $1 trillion in AI-related extra valuation. This may double Tesla’s market caps to more than $2 trillion by late 2026. Again, Tesla announced its fresh lower-priced vehicle in the first half of 2025, starting around $30,000 including tax credits, which could align well with market conditions.

Elon Musk’s Neuralink project successfully raised $600 million, valued up to $9 billion by some analysts. It develops brain-computer interfaces (BCIs). Their flagship product, called "The Link," is a coin-sized implantable device to control various devices with thoughts.

All of the above are natural fundamental background behind a new round of Tesla's rally to new heights, not to mention such a "trifle" as a simple repetition of the historical peaks of December and January around $480. From a technical point of view, Tesla's price consolidation between $330 and $355, to digest the set of news from April 22-23, lasted only two weeks until yesterday's trading session on May 27 when the situation ultimately resolved in favour of further gains. It therefore makes sense to reiterate a very short-term horizon for Tesla within the range from $400 to $420, where the price has a high chance of being as early as June, with targets above $500 in the medium term, and most likely within the next few months, or at least until the end of 2025.