Tesla stock rose in early trading Friday as investors suddenly appeared more optimistic about theoutlook. It’s also possible traders are in control of the recent rally.
Shares of the electric-vehicle maker were up 6.9%, while S&P 500 were little changed and Dow Jones Industrial Average were down 0.3%.
The move comes after Tesla stock added 6% on Thursday, helped in part by in-line inflation data that solidified investors’ belief that rate cuts are coming. Auto companies like lower rates because cars are generally financed. Shares of General Motors and Ford Motor rose 2.4% and 3%, respectively, on Thursday as well.
Tesla shares notched their highest close since February on Thursday, leaving investors wondering what’s coming next.
“Tesla broke out of a short-term [trading] pattern in August, which targeted a [trading] level near $384,” said Will Tamplin, a senior technical analyst at Fairlead Strategies. “We think that level will be reached soon since short-term momentum is accelerating with [Thursday’s] move.”
He sees another 4% or 5% in the recent rally. Tamplin isn’t making a fundamental call on Tesla stock. Technical analysts use stock charts and market history to gauge investors’ sentiment and forecast where a stock can go over the short and medium term.
Traders use charts, too, and they like to buy things that look like they have more room to run.
Coming into Friday trading, Tesla stock was down about 9% so far this year, but up about 62% over the past 12 months. Investors have been balancing falling car sales with AI opportunities.
Tesla delivered about 721,000 cars in the first half of 2025, down 13% year over year. It also successfully launched a small self-driving cab service in Austin, Texas in June.
