Tesla‘s (NASDAQ: TSLA) stock price is holding steady above the $400 support level, with an analyst predicting that the equity will hit $600 in the coming weeks.
TSLA shares traded at $424.09 during the last trading session, reflecting a minor drop of 0.5% for the day. Despite starting 2025 below the $400 mark, Tesla has made a notable recovery, gaining almost 12% year-to-date.
Tesla stock price path to $600
Regarding the next price target for the electric vehicle (EV) giant, stock trading expert Mike Investing opined that TSLA’s technical indicators suggest the equity will hit $600 by March. Potentially en route to becoming the most valuable company in the world, he shared the prediction in an X post on January 22.
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According to the expert, Tesla appears primed for a breakout after breaching the upper boundary of its descending channel, which has been in place since late November. This signals a potential trend reversal, supported by tests of key resistance levels, paving the way for a swift rally to $600.
“TSLA will become the most valuable company in the world within the next 6 months. <…> $600+ incoming by March,” the analyst said.
Adding to the bullish momentum, Tesla is trading above its 50-day moving average (MA), often associated with sustained upward trends. Key resistance targets include $520 and $600, consistent with historical levels and Fibonacci retracements.
During the recent dip, Mike Investing also noted that institutional investors have demonstrated strong confidence, accumulating over $70 million in July $700 call options.
As reported by Finbold, the analyst previously noted that Tesla is likely to outperform the broader stock market in 2025, citing technical factors and key underlying fundamentals for the Texas-based giant.
Wall Street analysts have shared a similar bullish outlook. One specific example is Morgan Stanley (NYSE: MS) analyst Adam Jonas, who identified Tesla as the bank’s “Top Pick” for 2025, with a bull case scenario predicting the equity could reach $800. Jonas revised his TSLA price target to $430 from $400 in the short term, maintaining an ‘Overweight’ rating.
Tesla stock fundamentals
Meanwhile, one of the biggest drivers of Tesla’s potential stock surge could be tied to fundamentals, such as the company’s venture into artificial intelligence (AI) and its full self-driving (FSD) technology rollout.
With Donald Trump officially resuming office, his administration could ease regulations, accelerate Tesla’s autonomous driving rollout, and boost its robotaxi potential. Elon Musk‘s connections to Trump might also lead to deregulation, reducing compliance costs and speeding up product development.
Tax reforms or tariffs could also protect Tesla from competitors like China’s BYD, strengthening its position in the U.S. market.
However, reducing EV subsidies might hurt sales, especially as the company aims to grow its delivery figures after falling short of analysts’ estimates in Q4 2024, delivering 495,570 vehicles compared to the anticipated 504,770.
Wall Street analyst Gordon Johnson echoed the bearish outlook, warning of a Tesla “bloodbath” after Q4 2024 deliveries missed expectations. UBS expert Joseph Spak added that Tesla’s stock might be overvalued and pricing in AI and autonomous driving potential, despite the lack of major products in these areas.
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