On Thursday, September 5, Tesla (NASDAQ: TSLA) announced the expansion of its Full-Self Driving (FSD) feature to customers in Europe and China in the first quarter of 2025, pending regulatory approval.
The news positively boosted TSLA shares, as they added 2.9% in the trading session, as the electric vehicle (EV) stock closed at a valuation of $230.17, with gains of 1.85% in the pre-market on September 6.
Furthermore, the previous five trading days have also been positive for TSLA stock, which recorded a 9.64% advance on the price chart, increasing its price to above $230 valuation.
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Technical analysis of TSLA stock
Analysis of technical indicators for TSLA stock further confirms the bullish sentiment as its shares trade above the nearest one-month resistance zone at $228.38, while pre-market gains are pushing its price to cents away from the three-month resistance set at $234.72.
Conversely, the support level is $210.38, which acts as a recovery point in case of a potential price reversal.
Looking at the simple moving average (SMA) for the 50, 100, and 200-day periods, the current price movement is well above all three parameters, advancing a positive trend.
The relative strength index (RSI), with a reading of 60.91, supplements the price increase, indicating that TSLA shares are currently between a neutral and overbought level.
Analysis of the remaining technical indicators suggests a ‘strong buy’ rating at the time of writing.
Wall Street is still cautious regarding TSLA shares
Although there are more reports to be released from Wall Street analyst firms that assess the most recent FSD development, the previous stance from financial firms reflects caution.
One of the analysts who shared his thoughts recently on the FSD launch in Europe and China is Morgan Stanley’s Adam Jonas, who, on September 5, reiterated his “buy” rating and price target of $310 for TSLA shares while making it a “Top Pick.” Jonas noted that regulatory uncertainty and geopolitical tensions, including the U.S. election, could impact the timing of the FSD release.
Morgan Stanley’s analyst also stressed that due to data sensitivity concerns, the FSD launch doesn’t signal immediate approval for robotaxis in China. Still, it could boost consumer interest in autopilot features.
On the same date, Piper Sandler expert Alexander Potter maintained a “buy” rating and $300 price target for TSLA shares while remaining unconcerned about an apparent decline in Tesla’s self-driving software performance despite data suggesting a drop after several updates.
While some skeptics have questioned the tracker’s reliability, Potter, after consulting with the tracker’s creator, Elias Martinez, believes the situation is more complex. He notes that while the trends may concern HW3 vehicle owners, they don’t pose a significant issue for Tesla shareholders.
In a shift from FSD-focused news, Barclays’ researchers maintained a “buy” rating on TSLA stock, with a $220 price target, which indicates a downside from the latest closing price. The positive rating comes after the news that the German government decided to extend EV maker’s subsidies until at least 2028.
Taking an opposed stance to his colleagues, Tesla stock’s famous bear, Gordon Johnson from GLJ Research, kept his “sell” rating and $24.86 price target on September 5, citing multiple legal obstructions to the proposed FSD release timeline in Europe and China.
Tesla stock average price target
Over the past three months, Wall Street analysts have maintained a “neutral” rating on Tesla stock. Of the 57 ratings, 19 recommend a “strong buy,” 4 suggest a “buy,” 22 advise holding, 2 call for a “sell,” and 10 have issued a “strong sell” rating.
The average price target of $215.77 indicates a potential 3.96% downside from the current price levels of TSLA stock.
Considering that most of the recent analyst price targets are based on the successful deployment of Tesla’s FSD in Europe and China in Q1 2025, any potential delays could negatively impact its stock price in the upcoming months.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
