To The Moon

On April 9, 2025, the U.S. stock market staged a jaw-dropping rally, with the major indices posting their biggest single-day gains in years: the Dow Jones Industrial Average soared 7.87%, the S&P 500 skyrocketed 9.52%, and the Nasdaq Composite surged an eye-popping 12.16%. Amid this market frenzy, Tesla (TSLA), a titan in the tech and renewable energy space, emerged as a standout performer. With its stock price riding the wave of this rally, coupled with strong fundamentals, a bullish technical setup, and a favorable macro backdrop, Tesla is screaming “buy” right now. Here’s why I’m strongly bullish on Tesla and why you should be too.

1. The Market Surge: Policy Relief and a Tech-Led Rebound

The April 9 rally was sparked by President Donald Trump’s announcement to pause most “reciprocal” tariffs for 90 days (excluding China), easing fears of a global trade war and a potential economic slowdown. Just days earlier, the market had been in turmoil—on April 7, the S&P 500 logged its largest single-day point swing since 1967, a staggering 411.53 points, as uncertainty over Trump’s tariff plans sent the VIX (fear index) soaring above 60. But the tariff pause flipped the script, igniting a massive relief rally and restoring investor confidence, particularly in the tech sector.

Tesla, a darling of the tech and EV world, rode this wave like a champ. The Nasdaq’s 12.16% gain—its biggest since January 2001—underscored the strength in tech stocks, and Tesla was no exception. On April 9, Tesla’s stock closed at $272.10 in after-hours trading, up a whopping 22.64% for the day, reflecting the market’s renewed faith in its growth story. With tech leading the charge, Tesla is perfectly positioned to capitalize on this momentum.

2. Tesla’s Fundamentals Are Firing on All Cylinders

Tesla’s fundamentals are rock-solid, providing a strong foundation for its stock price. In Q3 2024, Tesla delivered approximately 463,000 vehicles, a 6% year-over-year increase that beat market expectations. This growth highlights Tesla’s ability to maintain its dominance in the global EV market, even as competition heats up. In China, the world’s largest EV market, Tesla continues to shine, buoyed by supportive government policies and its own competitive pricing strategy, which has driven steady sales growth.

But what really gets me excited is Tesla’s progress in full self-driving (FSD) technology and its Robotaxi ambitions. CEO Elon Musk recently shared that the company is on track to roll out more Robotaxi services by the end of 2024, a move that could unlock massive new revenue streams. FSD’s commercialization isn’t just a game-changer for Tesla’s bottom line—it could redefine the company as a tech juggernaut, commanding a valuation far beyond that of a traditional automaker. With these catalysts in play, Tesla’s growth trajectory looks unstoppable.

3. Technicals Are Screaming Bullish

From a technical perspective, Tesla’s chart is lighting up with bullish signals. Based on the chart provided, Tesla’s stock has recently broken above key moving averages (MA5: 246.79, MA10: 258.10, MA20: 254.72, MA30: 257.74) and is holding strong above the 254.86 support level. This breakout suggests the stock is gaining serious momentum. At $272.10, Tesla is now testing the $280 resistance level, and a clean break above this could pave the way for a run toward $300 or higher—a level not seen in recent history.

The broader market rally on April 9 only adds fuel to the fire. The S&P 500 rebounded 12.86% from its lows two days prior, with trading volume hitting record highs, signaling strong market participation. As a key component of the S&P 500, Tesla is riding this wave of inflows, and the technical setup suggests there’s more upside to come.

4. Macro Tailwinds: Lower Rates and the Renewable Energy Boom

The macro environment is also lining up in Tesla’s favor. The Federal Reserve’s ongoing rate-cutting cycle is expected to continue into 2025, with markets pricing in further cuts to support economic growth. Lower interest rates mean cheaper financing for Tesla, which is critical as the company ramps up global expansion, including new factory builds and capacity increases.

On top of that, the global push for clean energy is stronger than ever, and Tesla is at the forefront of this megatrend. As governments and consumers alike prioritize sustainability, demand for EVs and energy storage solutions is soaring. Tesla, as the undisputed leader in this space, stands to benefit directly. While U.S.-China trade tensions persist—Trump raised tariffs on Chinese goods from 104% to 125%—Tesla’s localized production in China helps it navigate these headwinds, ensuring it remains competitive in this key market.

5. Market Sentiment and Sector Momentum: Tech Is Back in Vogue

The tech sector’s resurgence is another tailwind for Tesla. The Nasdaq’s massive 12.16% gain on April 9 reflects a renewed appetite for tech stocks, with investors piling back into the sector after a period of tariff-induced selling. Analysts like Steve Sosnick from Interactive Brokers noted that the rally was a “natural” response to an oversold market, particularly in big tech. Tesla, as a poster child for innovation, is a prime beneficiary of this shift in sentiment.

Moreover, Tesla’s correlation with the S&P 500 adds another layer of support. The S&P 500 closed at 5,375.03 on April 9, and UBS forecasts it could hit 5,800 by the end of 2025—a 14% gain from its April 4 close. This bullish outlook for the broader market bodes well for Tesla, which is likely to outperform given its growth profile and sector leadership.

6. Risks to Watch, But the Long-Term Story Is Intact

Of course, no investment is without risks. U.S.-China trade tensions could still impact Tesla’s operations in China, and the broader market may face volatility if Trump’s remaining tariffs—or new ones—create fresh uncertainty. Global economic data will also play a role in shaping market sentiment in the months ahead.

But these risks pale in comparison to Tesla’s long-term potential. The commercialization of FSD and Robotaxi services could transform Tesla’s revenue model, while the global shift to renewable energy ensures sustained demand for its core products. With its leadership position in EVs, energy storage, and autonomous driving, Tesla is well on its way to becoming a trillion-dollar tech titan.

Conclusion: Don’t Miss the Tesla Train

Tesla (TSLA) is firing on all cylinders, and the stars are aligning for a major breakout. The April 9 market rally, driven by a tariff pause and a tech-led rebound, has set the stage for Tesla to shine. With rock-solid fundamentals, a bullish technical setup, and a macro environment that’s increasingly supportive, Tesla is a screaming buy right now. Investors should keep a close eye on its progress in FSD and renewable energy, while using technical signals to time their entry. The future is electric, and Tesla is leading the charge—don’t miss out on this opportunity!