TSLA Stock: Tesla’s shares are on the rise, climbing 10% so far this month through Thursday’s close and adding another 7% on Friday. The electric vehicle maker’s stock has bounced back from its year-to-date lows near $222 in March and is now nearing break-even, as per a report. After finishing last year at around $404, Tesla’s shares were recently trading near $392, as per an Investopedia report.
Tesla Stock Rises Sharply in September 2025
This recovery is especially notable given Tesla’s position earlier this year as one of the weaker performers among the “Magnificent 7”, a group of leading big-tech companies, according to the report. At the end of the first half, Tesla and Apple were the only two stocks from the group still in the red, lagging in the 3 major US indexes, as per Investopedia. For context, the Roundhill ETF tracking the Magnificent 7 has gained about 14% this year, according to the report.
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Tesla Recovers from Year-to-Date Lows Amid Market Optimism
Several broader market factors have likely helped Tesla’s rebound. Investors widely anticipate a Federal Reserve rate cut next week, which is generally good news for big tech stocks, as per the Investopedia report. Strong earnings growth in the second quarter has also provided some optimism about the economy’s health, despite ongoing concerns, according to the report.
At the same time, Tesla-specific developments appear to be fueling investor interest. While some remain cautious about Tesla’s core EV business, many are intrigued by the company’s potential in robotics and progress in autonomous driving, both at Tesla and in the wider industry, as per the Investopedia report. The heated public dispute between CEO Elon Musk and US president Donald Trump, which had cast doubts on valuable EV credits, seems to have cooled, as reported by Investopedia.
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Elon Musk’s Pay Package Helps Ease Uncertainty
Another factor lifting investor sentiment is that Tesla’s board recently offered Musk a new pay package, which could ease concerns about his long-term commitment to the company, though the package comes at a high cost, according to the report.
Short Squeeze Speculation May Be Fueling Tesla Stock Surge
Additionally, some traders see the rising share price as a sign of a potential “short squeeze,” where investors betting against Tesla may need to buy shares to cover losses, pushing prices higher, as per the Investopedia report.
Wall Street Analysts Remain Divided on Tesla Stock Price Target
Despite the recent gains, Wall Street analysts remain cautious. Visible Alpha data found that about as many combined bearish and neutral ratings as bull calls, while its mean price target of around $327 is substantially below current levels, but investors are, nevertheless, driving ahead, as reported by Investopedia.
FAQs
Why is Tesla stock going up now?
Tesla stock has climbed due to improving investor sentiment, anticipation of Fed rate cuts, and optimism around the company’s robotics and self-driving projects.
How much has Tesla stock recovered in 2025?
Tesla stock rose from a low of around $222 in March to about $392 recently, almost back to its year-end 2024 level of $404.