Tesla Stock Chases 8-Day Winning Run. The Rally Could Stall at This Level.

Tesla sold 4,306 Cybertrucks in the U.S. in the second quarter, down 51% year over year, according to data provider Cox Automotive (Photo by Justin Sullivan/Getty Images)

Key Points

About This Summary

• Tesla shares have risen for seven straight sessions, gaining about 23% during that time.
• A settlement, Musk’s stock purchase, and robo-taxi expansion news aided the stock’s gains.
• The $440 level is key resistance, while $355 to $360 is the next meaningful support level.

Tesla stock is on one of its runs, leaving investors wondering how good things can get. The $440 level is one to watch.

Shares of the electric vehicle maker were up 1.6% at $432.50 in premarket trading, while S&P 500 and Dow Jones Industrial Average futures were up 0.8% and 0.6%, respectively.

Coming into Thursday trading, Tesla shares have risen for seven consecutive trading sessions, adding about $79, or 23%, over that span.

A few things helped with gains, including a Reuters report that Tesla settled a California lawsuit over its driver assistance technology. The company didn’t respond to a request for comment about the suit.

Before that, CEO Elon Musk’s $1 billion stock purchase, which was disclosed on Monday, helped too.

The electric-vehicle maker also appears to be on the cusp of expanding its self-driving taxi service to Las Vegas. Tesla launched its long-awaited robo-taxi service in Austin, Texas, in June.

Wednesday’s gain was aided by the Federal Reserve, which cut interest rates by a quarter of a percentage point as expected. Car companies like lower interest rates. Many cars are financed, and lower rates equal lower monthly payments.

“Tesla is approaching the top of its trading range from earlier in 2025, near $440, which was the mid-January high and now represents key resistance,” says CappThesis founder and market technician Frank Cappelleri.

He isn’t making a fundamental call on Tesla stock. Technical analysts use stock charts and market history to understand how stocks trade and when investors have bought and sold stocks in the past. Resistance refers to where investors have sold stock in the past, taking some profits, and making it hard for shares to move substantially above the resistance level.

“On the downside, there is no nearby support given this [recent] non-stop seven-day run,” says Cappelleri. “The stock most recently broke out above the $355 to $360 zone, which would be the next meaningful level on the downside.”

Cappelleri isn’t guaranteeing anything. He can help fundamentally-minded investors understand the rally and what could come next. For long-time Tesla watchers, they likely understand that the stock simply does this from time to time. This is the stock’s fourth run gaining more than 20% in seven days since March.

Coming into Thursday trading, Tesla stock was up about 5% year to date and up about 87% over the past 12 months.

Write to Al Root at allen.root@dowjones.com