Case for Tesla

$TSLA ( ▼ 1.65% )  

Tesla (TSLA) may be on the brink of a powerful rebound as its aggressive cost-cutting measures and AI-powered advancements begin to pay off. With the launch of its next-gen vehicle platform on the horizon, Tesla is poised to unlock a new wave of demand at lower price points.

Chart Analysis

Tesla’s stock has been in a freefall for much of 2025, but the bulls appear to have finally stepped in to stabilize the slide. TSLA has managed to hold above the critical $211 support level, signaling a potential bottoming formation. Now, all eyes are on the $263 resistance level, which marks the next major hurdle for the stock to reclaim long-term momentum.

Upside Potential

Full Self-Driving (FSD) continues to improve rapidly, and any move toward licensing this tech to other automakers could ignite a fresh revenue stream. Tesla’s Dojo supercomputer and vertical integration in AI training give the company a unique edge in the race for autonomous driving dominance.

Risk Factors

Rising competition from legacy automakers and aggressive Chinese players like BYD could erode Tesla’s market share. Execution risk remains high for upcoming projects like the next-gen platform, robotaxis, and the Optimus humanoid robot.

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