Tesla (NASDAQ: TSLA) stock has shown surprising resilience in recent sessions, climbing back above key technical levels despite lackluster first-quarter earnings and ongoing concerns about brand perception. The rally appears driven by CEO Elon Musk’s recommitment to core business initiatives — most notably, the long-promised robotaxi rollout in June — and a step back from his controversial role within the Trump White House.
Shares rose 0.3% on Monday to close at $285.88, extending Friday’s nearly 10% surge and pushing TSLA back above its 50-day moving average for the first time in weeks. The stock had plunged more than 35% from its early-year high, bottoming on March 11, before staging an 18.1% weekly comeback.
Investor Sentiment Shifting After “Disaster Quarter”
Tesla’s Q1 2025 earnings, released last week, were broadly seen as disappointing, missing both revenue and profit expectations. Yet analysts argue that investor attention has shifted from financials to leadership signals and upcoming product catalysts.
In a note dated April 23, Wedbush analyst Dan Ives — a longtime Tesla bull — called Musk’s comments on the conference call a “turning point”. Ives emphasized Musk’s verbal commitment to step back from political entanglements and focus on Tesla’s future-facing technology as a much-needed pivot.
“This was the time to close one dark chapter and open a brighter one for the Tesla story,” Ives wrote, citing autonomous driving and robotics as Tesla’s central narrative going forward.
Brand Fallout and Strategic Refocus
Musk’s high-profile alignment with President Trump in recent months has sparked criticism in key markets, particularly in Europe and among progressive U.S. consumers, raising concerns about potential brand damage. While his reduced presence in Washington may not erase those reputational wounds overnight, it is seen by analysts as a pragmatic step to stem further fallout.
“The brand damage will not go away just by this move,” Ives cautioned. “But Musk did what he needed to do to reassure shareholders.”
Tesla’s management also reiterated commitment to its June robotaxi launch, a program central to the company’s long-term growth thesis. Despite delays in full autonomy, Tesla has continued to enhance its Full Self-Driving (FSD) platform and recently expanded beta testing.
Technical View: Support Reclaimed, Momentum Builds
From a technical perspective, Tesla’s ability to reclaim its 50-day moving average is encouraging to traders, though the stock remains down nearly 30% year-to-date. The next resistance level is around $295–$300, with stronger confirmation above $310 potentially triggering renewed institutional interest.
Analysts remain divided on valuation. While Tesla still commands a premium multiple relative to traditional automakers, its revenue and margin trends have decelerated. Much of the upside case now rests on successful execution in robotics, energy storage, and autonomy, areas where competition is intensifying.
Is TSLA a Buy or Sell Right Now?
For long-term investors, the current setup may present a buying opportunity, provided they believe in Tesla’s leadership pipeline and the scalability of its AI initiatives. Short-term traders may also see tactical upside if broader markets continue their rebound and Musk’s reduced political footprint helps soften sentiment risks.
But the stock remains vulnerable to execution missteps, regulatory hurdles around autonomy, and macro volatility — especially as global trade tensions remain unresolved.
Tesla stock may be on the rebound, but caution is warranted. Investors should weigh Musk’s strategic realignment and product roadmap against elevated expectations and ongoing reputational risk. Whether TSLA is a buy or a sell may depend less on quarterly results and more on how well the company delivers on its robotaxi vision and tech innovation promises in the months ahead.
