Tesla (NAS100:TSLA) stock has found some near-term support after the price recently dipped sharply on Elon Musk’s war of words with President Trump.
The price of TSLA has bounced at the $292.59 level, which was a period of minor resistance back in March and April. That is now the support for a push to $360 which could restart a bull move.
The recent spat appears to have cooled and investors are now looking ahead to the prospects for a Tesla turnaround after a struggling stock price in 2025.
A new Tesla model, possibly a scaled-down version of an existing vehicle, is expected to start production this month, fueling speculation among analysts. Tesla executives have been clear about the plan, saying: “We’re still focused on bringing cheaper models to market soon. The start of production is still planned for June,” said Tesla chief financial officer Vaibhav Taneja in the recent earnings call.
A cheaper Tesla is seen as an important defensive move against the recent price cuts and competition from Chinese EV makers. Lars Moravy, VP of vehicle engineering, said that the new “models that come out in next months…will resemble, in form and shape, the cars we currently make. And the key is that they’ll be affordable, and you’ll be able to buy one”. Deutsche Bank predicted that a new affordable model would be under $30,000 after federal incentives.
Tesla also needs to defend its path to autonomous driving, with robotaxis set to start running in Texas in June, Musk said in an interview with CNBC.
“We have thousands of cars that are being tested,” Musk said, adding that the first run will be very small, “will probably be at 1,000 within a few months”.
Tesla’s other future plan is for humanoid robots and that may be another development down the line but the stock’s ability to catch up to the Big Tech leaders seems a big task after the current performance.