Swaying at $345, Tesla is at the intersection of Wall Street graphs and Elon Musk’s growing imagination. Investors are not merely purchasing cars or even machines, they’re investing in a story in which one individual at the same time operates an EV firm, a robotics venture, a software research lab, and what not. However, the stock market is not certain whether it’s observing a business plan being executed or a trailer for next year’s blockbuster movie.
As of August 28, shares of Tesla are trading at $345.55, down 1.8% in the last 24 hours following a steep rally driven by bullishness over autonomy and robotics. The stock just broke out above a long-term falling trendline, which indicated a reversal after months of consolidation. Now, it fluctuates just below a technical buy point of $348.98, marked by a flat base.
Traders are watching the 50-day moving average at $340 as a short-term support. However, in the longer term, Tesla’s picture seems to be positive. As its 200-day moving average lies far below at $232.50, supporting the medium-term upward trend. Also, the RSI of 53 indicates well-balanced momentum, neither too much nor oversold.
Tesla’s recent surge has depended less on earnings power and more on narrative momentum. CEO Elon Musk is again driving investor attention to AI, robotics, and software as the future drivers of growth for Tesla. In a companywide meeting, Musk reiterated his ambitious vision, proposing that robotaxis and Optimus make electric vehicles secondary. He framed Tesla as “building a legion of Optimus robots,” envisioning the company as a future leader in robotics and physical AI and not merely cars.
On the autonomy side, Musk teased with version 14 of FSD and hinted at version 15 later in the year with exponential gains in safety. This adds to Tesla’s initiative to roll out Full Self-Driving (FSD) in Australia, which is a crucial milestone in its international strategy.
While Musk has grand plans for the future, the short-term fundamentals paint a different picture. Tesla is heading into its third straight year of declining profits. Automotive revenue in Q2 2025 dropped 12% year over year, which is the biggest decline since the company’s early years.
Valuation on the other hand continues to be elevated, where Tesla sells at a forward P/E of 68, well above auto peers. This puts more pressure on Musk’s ambitious robotics and AI ambitions. If execution disappoints, investors will lose faith in the story-driven rally.
Tesla is now put to a crucial test at the breakout level of $348.98. A significant break above it, along with the support of volume, could drive shares to the $360 – $370 area, with resistance at $380 being within sight by mid-September.
In a neutral scenario, the stock consolidates in the $340 – $355 range, as the investors process robotics news and wait for concrete advancements in autonomy. A failure to hold above the 50-day moving average would undermine the bullish setup and encourage a pullback.
Musk’s latest turning point underlines Tesla’s image as something beyond an automaker. Through ramping up the Optimus robot project with vision-based AI models, the company is wagering that physical AI will be its next growth driver. As thrilling as the robotics stories’ exciting markets are, investors have to weigh this against the ongoing earnings weakness and intense competition in EVs and AI as well. Tesla’s stock narrative, like its products, is still high-risk and high reward. It is an overvalued company at the crossroads of execution difficulties and ambitious, revolutionary promises.
Tesla’s success could well depend on whether Musk’s robots can translate dazzling demos into actual world adoption. If Optimus and autonomous driving find commercial viability, Tesla might transform itself as the Apple of embodied AI. If not, the company would become a cautionary tale of tech overpromising.
For the time being, Tesla is in a precarious equilibrium, with a badge of aspiration, a draw for speculative money, and a reminder that on Wall Street, innovation and hype walk through the same path. The question is not whether Tesla will pull above its $348 buy point, it’s if the company will overcome the gravity of its own high aspirations.
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