Tesla stock (TSLA) started the week on firmer footing, rising alongside major indexes as investors grew more confident in both trade diplomacy and tech earnings. The electric vehicle maker’s rebound follows a volatile stretch after its earnings miss last week. However, now traders are looking out for signs of stability in global markets and a more supportive policy backdrop.
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Trade Progress Lifts the Market
Negotiators from the U.S. and China reached a framework for a trade deal over the weekend. The agreement will be discussed further when President Donald Trump meets Chinese President Xi Jinping in South Korea on Thursday. Treasury Secretary Scott Bessent said both sides had reached a “preliminary consensus” on key points, suggesting a possible easing of tariffs and improved trade stability.
For Tesla, that matters. The automaker’s Shanghai Gigafactory remains central to its global production and delivery network. A thaw in trade tensions could ease supply chain costs and smooth operations heading into the year’s final quarter.
Investors Look Past Earnings Weakness
Tesla’s third-quarter operating profit fell 40% year over year, missing Wall Street expectations, but investors have largely shrugged off the dip. Instead, they are focusing on the company’s AI ambitions, including full self-driving technology and robotics, which could drive new growth over time.
Despite recent volatility, Tesla stock is up 7% this year and 61% over the past 12 months, far outpacing the broader market’s 15% gain. The resilience shows that investors remain confident in CEO Elon Musk’s long-term vision rather than short-term profitability.
Tech Earnings Will Shape the Week
This week’s market tone could be set by a wave of major tech earnings. Microsoft, Alphabet, and Meta Platforms report results on Wednesday, followed by Apple and Amazon on Thursday. Together, those companies represent roughly a quarter of the S&P 500’s total market value.
A strong round of results could keep the market rally going, especially if the Federal Reserve follows through with expected rate cuts next week. Tesla’s gains reflect a mix of improving global sentiment and steady faith in its role at the intersection of AI and electric vehicles.
Is Tesla Stock a Buy, Hold, or Sell?
Turning to Wall Street, TSLA stock has a Hold consensus rating based on 14 Buys, 11 Holds, and 10 Sells assigned in the last three months. The average 12-month Tesla price target is $378.20, implying a 12.8% downside potential.
