Shares of Tesla Inc. (NASDAQ: TSLA) closed just under $290 before the weekend, marking a stunning 30% rebound from their pre-earnings low earlier this month. The stock is still down from its December all-time highs, but the tone has changed.
The rally comes despite the company missing analyst expectations on both revenue and earnings last month, which tells you everything about how the market is now thinking. It seems like the band-aid has finally been ripped off, and investors are quickly shifting their focus back to the long-term growth story. As we head into the summer months, here are three reasons Tesla could break above $300 in the very near future.
Bullish Analysts Support Tesla
A rally like this doesn’t happen in isolation, and recent analyst updates have added fuel to the fire. Dan Ives at Wedbush, long one of Tesla’s most vocal bulls, reiterated his Outperform rating following last week’s earnings and maintained his price target of $350. From Friday’s close, that implies more than 20% upside in the near term, which is not bad for a company that just posted disappointing quarterly results.
But for Ives, the earnings miss wasn’t the big story. Instead, it was Elon Musk’s commitment to refocus his time and energy fully on Tesla. Musk confirmed during the earnings call that his involvement with the Department of Government Efficiency (DOGE), a side role that had created a significant backlash and media distraction, will be scaled back dramatically. That announcement was music to investors’ ears and a signal that the boardroom concerns around his divided attention may now be in the rearview mirror.
Wedbush believes this commitment re-centers Musk on Tesla’s massive opportunity set, including full self-driving, robotics, and long-term dominance in the EV and energy markets. With the leadership question now settled (for the time being), analysts like Ives are betting big that the company’s next act is about to begin.
Tesla's Technical Setup Is Very Bullish
[content-module:TradingView|NASDAQ:TSLA]Momentum indicators are also pointing to continued gains. After forming a clear double bottom near the $220 level, Tesla shares have posted a string of higher highs and lower lows, one of the clearest bullish chart signals in technical analysis.
The relative strength index (RSI) has increased to 55 and is still climbing, a sign of growing buying pressure that is not yet overbought territory. This gives the stock ample room to run further without immediately triggering a wave of profit-taking. The MACD also remains in bullish territory after a crossover earlier this month, which suggests that momentum is still shifting in favor of the bulls.
Tesla's Broader Return to Risk-On Sentiment Is Helping
[content-module:Forecast|NASDAQ:TSLA]Tesla’s strength isn’t just about its own news; it’s also riding a broader shift in market tone. After brutal risk-off trading in March and early April, investors have started to wade back into growth names. The S&P 500 managed to end April almost flat, an impressive feat considering how much volatility dominated the early part of the month.
This shift has been driven by a cooling in bond yields, a modest de-escalation in U.S.-China trade tensions, and better-than-expected earnings from some of the biggest names in tech. Tesla, often treated as a sentiment bellwether, has been one of the biggest beneficiaries.
At the same time, talk around Tesla’s potential in energy storage, AI infrastructure, and robotics continues to grow. During the earnings call, Musk referenced the company’s expanding ambitions in these verticals several times, signaling that the Tesla growth story is no longer just about cars. Bulls have long pointed to this broader opportunity set, and the market seems ready to engage with that narrative again.
Tesla Rally Gains Steam
Tesla’s recent rally isn’t a fluke. It reflects a growing recognition that the worst-case scenarios may already be priced in and that any sign of leadership clarity or operational stability could trigger a sustained move higher. The stock’s resilience in the face of disappointing earnings, paired with its strong technicals and improving sentiment backdrop, suggests that a push past $300 is entirely realistic.
Whether or not it gets there in a straight line is another question. However, with analysts like Wedbush reaffirming bullish targets, the chart flashing green, and risk appetite returning, Tesla looks well-positioned to stay in rally mode through the start of summer.
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