Tesla (NASDAQ: TSLA) stock is showing short-term bullish sentiment as investors speculate it could be gearing up for a sustained upward move despite the recent negative news surrounding the company.
For starters, Tesla has faced a series of headwinds, particularly backlash against CEO Elon Musk for his political views, which has impacted the company’s sales in key markets. At the same time, Tesla’s market position remains under pressure from Chinese electric vehicle (EV) makers, intensifying competition in the industry.
Adding to concerns, top Tesla investors are turning on Musk, calling for his exit from the company’s leadership.
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Tesla has corrected nearly 40% year-to-date. At the time of writing, TSLA was trading at $231, up over 2% in the past 24 hours.
Is Tesla’s stock price set for recovery?
Tesla’s latest rebound is driven by a combination of fundamental factors and technical formations, which could begin a sustained recovery if they continue to impress investors.
Notably, Tesla’s progress toward its robotaxi vision is a major driver of this renewed optimism. On March 18, 2025, Tesla secured the first in a series of permits needed to operate robotaxis in California, a critical step toward launching its autonomous ride-hailing service.
While full deployment is still pending further approvals, the development has bolstered confidence in Tesla’s autonomous driving vision. Indeed, Tesla’s autonomous promise under its Full Self-Driving (FSD) technology remains a key fundamental factor likely to help the company capture more market share.
Additionally, Elon Musk’s appearance on Fox News on March 18 seems to have boosted investor confidence. In the interview, Musk reiterated Tesla’s commitment to electric vehicles and dismissed recent attacks on the company as “evil.”
Previously, Musk admitted that running Tesla while managing his Department of Government Efficiency (D.O.G.E) role was “greatly difficult,” but expressed his commitment to leading the EV firm.
At the same time, Wall Street has also been turning bullish on Tesla after a series of downgrades and price cuts. On March 19, Cantor Fitzgerald analyst Andres Sheppard pointed out that TSLA’s recent decline presents a buying opportunity. As a result, he upgraded the stock from ‘Hold’ to ‘Buy’ while maintaining his ambitious $425 price target.
He cited “material catalysts” ahead, including the June launch of Tesla’s robotaxi segment, the expansion of FSD in China and Europe, and the anticipated release of lower-cost EVs in 2025. Additionally, Tesla is ramping up production of Optimus Bots and preparing for Tesla Semi deliveries.
As reported by Finbold, investment strategist Shay Boloor believes the market is misinterpreting Tesla by viewing it merely as an electric vehicle manufacturer. Instead, he emphasized Tesla’s transformation into an AI-driven technology powerhouse, with autonomy, robotics, and software set to become its core pillars—potentially taking shape by 2026.
Has Tesla’s stock price bottomed?
From a technical perspective, investment advisor Gray Black noted in a March 19 X post that TSLA appears to have bottomed at $222, arguing that the recent brand controversies are short-lived.
Black attributed the drop in Q1 delivery estimates, from 429,000 to 405,000, to Model Y inventory shortages rather than Musk’s political stance.
The analyst also pointed out that key data shows Tesla orders have remained steady over the past six months, while Model 3 deliveries for Q1 remain stable.
Although Tesla remains uncertain, its strong fundamentals are key for long-term potential. However, for the stock to sustain its recovery, Musk must reassure investors that he is firmly in control and capable of steering the company through its current challenges.
Featured image via Shutterstock
