- Tesla shares extend gains, climbing 6.9% amid strong delivery numbers and renewed CEO focus.
- The rally marks a sharp reversal from earlier 2025 struggles, cutting year-to-date losses to under 15%.
- Analysts warn the stock may be technically overbought as RSI crosses 70.
A Turnaround Gains Momentum
Tesla's stock continued its upward trajectory Thursday, adding to recent gains as the electric vehicle maker demonstrated operational resilience and CEO Elon Musk addressed investor concerns about his divided attention. The 6.9% surge follows better-than-expected global deliveries of over 520,000 vehicles last quarter - an 8% beat against analyst projections.
"We're seeing classic Tesla momentum here," said one trader who asked not to be named while discussing client positions. "The delivery numbers show they can execute despite the European headwinds, and Musk's recommitment speech last week clearly moved the needle."
Geopolitical Tailwinds
The rally coincides with easing U.S.-China trade tensions that had previously weighed on the stock. While Tesla continues to face a 53% sales decline in Europe, investors appear focused on broader global performance and recent U.K. agreements that could open new markets.
Some technical analysts caution the rapid ascent may be overextended. The Relative Strength Index crossed 70 this week, a level that has preceded pullbacks in the past. In December 2024, a similar overbought condition preceded a 50% correction over three months.
Tesla did not immediately respond to requests for comment on whether the delivery pace can be sustained. The company's next major test comes with second-quarter production numbers due in early July.