Tesla Stock Slides 0.5% as Robotaxi Excitement Hits $350 Barrier & Tesla Stock Journey in 2025

As of May 26, 2025, Tesla’s stock is priced at $339.34, down 0.5% in the last 24 hours. Even with this small drop, the stock has shown a strong upward trend throughout May, gaining over 20% overall. This rise has caught the attention of technical traders, especially because Tesla’s price recently climbed above its 200-day simple moving average (SMA), which is around $330, a key level that signals positive momentum.

Tesla Stock: Key Support and Resistance Levels to Watch

Starting now, the $330 level represents an important area of support. On the other hand, staring right at resistance is the price of $350, which is immediately followed by crucial resistance between $355-360 that shares archaeological significance as previously established rejection zones in mid-2024. A clean breakout above $360 would trigger further upward movement, possibly targeting $375-$380. 

The Relativity Strength Index (RSI) is reading around 65, approaching the overbought levels but still with miles to roam inside the very healthy bullish momentum. It acts as an endorsing argument that the rally may still stand a contest before meeting a greater degree of exhaustion. Elsewhere, the Average True Range (ATR) is roughly at 5.25%, representing moderate intraday volatility in Tesla stock.

AI Optimism vs. Global Risks: The Forces Shaping Tesla’s Future

Recently, Tesla’s performance has again been buoyed by renewed investor optimism, fueled mainly by its announcements of pushing into the autonomous vehicle space. An investment firm has recently renewed its bullish outlook on Tesla, setting a share-price target of $500. This positive shift reflects strong confidence in Tesla’s future growth and potential in the market. This change of sentiment revolved around Tesla’s plans for a limited robotaxi service beginning in Austin, Texas, in June 2025.

• Dan Ives of Wedbush spoke about the “iPhone moment” for Tesla because of this move.
• He says it takes the rollout of robotaxis to put it before an important milestone, which will help define its next phase of growth for Tesla.
• This is because the autonomous driving segment is viewed as a multi-trillion-dollar opportunity.
• The first-mover advantage of Tesla seems to build up for hold of the most important market share.

But the ill wind of recession can never be ignored. Reports have emerged of dwindling sales figures of Tesla from some of its most promising international markets, from China and Germany, enough to rival the gains from the innovations across the Atlantic in the United States. Indeed, potential geopolitical and trade risks loom on the horizon. Notably, ex-President Donald Trump suggested a tax of 50% on all imports from the EU, which can start a countercycle affecting Tesla supply chains and European market prospects.

Tesla’s Q1 2025 Financial Highlights: Growth, Gaps & Guidance

The firm reported non-GAAP earnings of $0.27 compared to Wall Street’s consensus estimate of $0.41. Revenue missed estimates as well, coming in at $19.335 billion compared with expectations of $21.345 billion. The miss is substantial, especially considering that $595 million in regulatory credit sales for the quarter were included, which is something other automakers have mocked Tesla about. Without these credits, the company would have really shown a loss.

Tesla Stock Performance 2025: Key Milestones and Price Movements

Tesla Faces Growing Challenges Amid China’s EV Boom

In the global EV market, competition is rising against Tesla, especially from Chinese automakers like Xiaomi. With the imminent launch of the YU7 SUV, which will take aim at the Model Y, Tesla may face strong competition in Asia as rival electric SUVs enter the market with advanced features and extended driving range offering around 100 miles more than Tesla’s Model Y. Industry analysts believe that such offerings could significantly impact Tesla’s market share in China, especially as local brands continue to push innovation and affordability to attract consumers in one of the world’s largest EV markets.

Investor Confidence on the Fence: Signs of Uncertainty

Some analysts are upbeat about the future of Tesla, while others are cautious. Ross Gerber, an old admirer of Tesla as well as a leading wealth manager, recently sold over 26,000 Tesla shares, accounting for about 10% of his firm’s holdings in total. He predicts a bleak future for Tesla if CEO Elon Musk does not resign, saying that he is worried that Musk’s political involvement will diminish the public’s perception of and stock price for the company.

What Lies Ahead: Key Scenarios to Watch

• Assuming that today’s market parameters will essentially remain as they are and Tesla will initiate the Austin robotaxi launch on time, in 1–2 weeks, the stock will venture to test the resistance zone at $350. 
• A firm breakout above $360 would give way to a bullish scenario in the near term with targets toward $375-$380, especially if volume and RSI levels continue to support the rally.
• In contrast, a breakbackdown below $330 would counter the bullish stance and may lead to a test of support back down at $310.
• The fall below $310 would signal extended consolidation and would become more relevant if factors triggering unfavorable global economic conditions arose.

Final Reflection

Tesla’s behavior in the stock market in 2025 echoed a multitude of innovative, optimistic thoughts being counter balanced by foreign challenges. The robotaxi launch, which is on the verge of commencement for Tesla, acts as an important milestone for the industry, as ample opportunity could sweep the company into a new era of autonomy. But from geopolitical aspects to competitive realms and internal controversies, there are enormous risks associated. Investors need to pay attention to these happenings and work their way around them.