When analysing the Tesla (TSLA) stock price chart six days ago, on the morning of 5 June, we:
→ highlighted Elon Musk’s critical comments regarding the spending bill promoted by the US President;
→ noted that a potential rift between Musk and Trump could have long-term implications, including for TSLA shares;
→ outlined an ascending channel (marked in blue);
→ suggested that the price might correct from the upper to the lower boundary of the channel.

This scenario played out rather aggressively: later that same day, during the main trading session, Tesla’s share price dropped sharply to the lower boundary of the channel amid a scandal involving Musk and Trump.

However, the lower boundary of the channel predictably acted as support. Yesterday, TSLA shares were among the top five performers in the S&P 500 index (US SPX 500 mini on FXOpen), gaining around 5.6%.

As a result, TSLA stock price climbed back above the psychologically important $300 mark, recovering from the previous week’s sell-off.

Why Are Tesla (TSLA) Shares Rising?

Bullish drivers include:
→ The upcoming launch of Tesla’s robotaxi service, provisionally scheduled for 22 June. Elon Musk has stated he intends to use the service himself.
→ Easing of tensions with the US President. Donald Trump declared that he has no intention of "getting rid of Tesla or Starlink" should he return to the White House.
→ Continued support from Cathie Wood, the prominent asset manager, who once again reaffirmed her confidence in Tesla’s future success.

Technical Analysis of TSLA Chart

Today, TSLA’s share price is hovering near the median line of the previously identified ascending channel – a zone where supply and demand typically seek equilibrium.

Also worth noting is the $320 level: in May, it acted as support, which suggests it may now function as resistance.

Given these factors, it is reasonable to expect that the sharp recovery from the 5 June low may begin to lose momentum, with the price likely to stabilise and form a consolidation range following the recent spike in volatility.

Buy and sell stocks of the world's biggest publicly-listed companies with CFDs on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.