To The Moon

TSLA : 3 Forces Driving It Higher ? Read to know !

$Tesla Motors(TSLA)$  

$Tesla Motors($Tesla Motors(TSLA)$  )$ shares are on the move again, climbing nearly +30% this month and reversing much of its 2025 slump.

Just September 2025 alone, TSLA has risen from $325 levels at the start of the month to presently hovering around the $410-mark (as of 15 Sep 2025 closing). (see below)

The scrip is close to doubling its value as compared to the lows of March 2025, when it was trading at around $222.

From being one of the weakest in the "Magnificent 7" earlier this year, TSLA's September surge has once again put it back in the spotlight and back on investors' radars, along with $Alphabet(GOOG)$. (see below)

Past 4 weeks' performances (as of 15 Sep 2025)

Below are 3 factors driving the rebound:

#1. Renewed Faith In TSLA's Future.

Even as demand concerns weigh on its core EV business, Tesla is getting attention for its (a) robotics initiatives and (b) “advances” in autonomous driving.

The cooling of Musk's public spat with Trump has also reassured investors, reducing the risk of losing valuable EV subsidies.

Meanwhile, Tesla's board approving a fresh pay package at the tune of $1 trillion for Musk.

It would be the largest corporate compensation plan ever and its structured mainly in Tesla stock, contingent on Musk achieving a series of very ambitious performance targets over the next 10 years.

It is certainly a shift from recent sentiment surrounding the company, where financials group Macquarie's Large Cap Growth Fund in its Q1 2025 investor letter:

Had credited its decision to avoid TSLA stock as a top contributor to returns.

TSLA is faced well-publicised headwinds last quarter that may bleed into future periods.

The business has never met our quality standard.

Is there any truth in Macquarie’s assessment ? Have they been objective ?

#2. Short Squeeze In Play ?

The recent spike has stoked speculation of a "short squeeze," where short-sellers are forced to buy back shares to cover losses, adding more fuel to Tesla's upward momentum, as per media reports.

#3. Fed Optimism’s Tailwind Push.

With investors widely expecting US central bank’s imminent announcement of a rate cut on Wed, 17 Sep 2025, growth stocks are back in favour.

Tech-heavy names like TSLA typically benefit from lower borrowing costs.

Q2 2025 stronger earnings for most S&P 500 companies, across various sectors have further boosted confidence in US economy. (click here ! for details on best/worst sectors. Repost to share ok.)

Personal Viewpoints: (mine only)

Morningstar has published an overview of their assessment of US stock market in early September 2025.

Despite US market 3 composite indexes recent new highs, Morningstar US Market Index indicated a composite level equal to their fair value estimates. (see above)

US stock market is at record highs and shows strong momentum, but valuation metrics and expert outlooks imply it is not way overvalued as of mid-September 2025.

US market's pricing reflects (a) optimism about economic conditions and (b) monetary policy easing rather than irrational exuberance.

Assuming the “expert” speaks the “situational” truth, investors navigating current enthusiastic environment, should (1) capitalize on the momentum while (2) maintaining agility.

This means :

Position portfolios to benefit from ongoing market strength.

Have clearly defined risk management strategies in place eg. (i) set stop-loss levels or (ii) use hedges, to enable quick exits if market conditions shift abruptly.

Stay disciplined and prepared, allows investors to enjoy gains during the euphoria without being caught off guard by sudden reversals.

I think by end September 2025, US market’s “fair value” (as Morningstar suggested) and TSLA’s sudden price surge will become clearer. New earnings season and new US economic reports will set the record straight.

Remember to check out my other posts. (See below). Help to Repost ok, Thanks.

Must Read: Click on below titles to access. Repost to share, Like as encouragement ok. Thanks.

C3.ai poor earnings is a win for PLTR ? Mon, 15 September. Idea post.

What's next after Jobs, Inflation & Q2 earnings? Mon, 15 September. Idea post.

Will NVDA's bet on HON's quantum Pay Off ? Fri, 12 September. Pick post.

Do you think TSLA stock price rise is a worthy celebration ?

Do you think US market is overvalued despite market experts’ overview & assessment ?

Time to Take Profit of Tesla After Surge?

Elon just bought $1B worth of Tesla stock! A huge vote of confidence for investors! 1. Is the $400 breakout a sustainable trend or just a short-term spike? 2. Can Tesla surpass the previous high of $488 and head to $500? 3. Would you take profit about one half of small portion of TESLA?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.