Tesla Stock Nears Record Peak as Traders Bet Big on Momentum

As Tesla shares are just $60 short of an all-time high, traders are playing it like it’s a countdown to New Year’s Eve, except in this case, the fireworks are in Elon Musk’s hand. Tesla’s the leading role in the EV drama again, and with this high-speed battle, bragging rights are as valuable as the breakthrough itself.

Tesla shares increased 0.9% in early trading Monday following the news that Warren Buffett’s Berkshire Hathaway has officially closed out its historic stake in BYD. This seems to be like the end of a legendary 17-year streak, where a $230 million investment grew into billions, returning an eye-popping return of 3,900%. Not too ruthless for an idea that was gifted to them by Charlie Munger back in 2008.

With Berkshire off the table, the focus among investors is back on Tesla. BYD, previously rode high on the “Buffett halo” that it no longer has. The cleanest and boldest EV play traders and institutions are now looking to turn towards Elon Musk’s Tesla. While Munger once called BYD’s CEO a “damn miracle,” the story now wonders if Musk’s miracle can outlive them all.

Tesla’s Streak Rolls On

Tesla has been on a roll. The stock has gained in eight of the past nine trading days, which is very positive for the year and has registered a 6% profit in 2025 to date. On a 12-month basis, the rally appears even more spectacular with an 80% pop that has left tolerates confused. One prime catalyst is Elon Musk himself. Back at the beginning of the month, he invested $1 billion of his own money in Tesla shares. An action like that is more than monetary, it’s a statement.

A CEO vote of confidence that is this noisy sends bulls running and issues a dare for skeptics to contain them at their own risk. The outcome has been a sudden change in momentum. Tesla, which had been written off as sluggish at the start of this year, has powered back into leadership in the market. For dip-buyers, it has been a trader’s dream.

Close to All-time High

Tesla currently trades about $60 short of its all-time high record of $489. That’s the “final boss level”, which is a point of resistance that, if breached, could release another wave of excitement and boasting for the Tesla faithful. But a warning persists. Technical indicators warn that the stock might be getting hot, with RSI readings flashing overbought red signals. 

As per the experiences, it teaches us that when Tesla goes up too quickly, it tends to take a breath sometimes, badly. For investors, the configuration is straightforward that a breakout above $489 could propel another leg higher, or a breakdown here could give patient dip-buyers a golden opportunity. Either way, Tesla is the most-watched ticker in the EV universe today.

Bottom Line

With Buffett closing the BYD book, Tesla is back in the limelight of the EV investment narrative. The stock of the company is on strong momentum, fueled by Musk’s billion-dollar purchase and a market eager for growth champions. Whether Tesla breaks through the $489 barrier or pauses first, the traders won’t turn away anytime soon.

Tesla’s price action is not merely about valuation metrics or RSI charts, rather it’s about conviction. Bulls see Musk’s vision as worth pursuing, and bears persist in underestimating how far simple conviction can drive a stock. At its core, Tesla is surfing on the waves of symbolic influence and raw liquidity, which is a dangerous place for anyone to take a bet.

Tesla is less of a carmaker and more of a cultural currency. The stock is not only sold on deliveries or earnings, but on symbolism, where Musk doubles his bet, Buffett takes a pass, and the market drools for another record high. Whether Tesla breaks through $489 or comes up just short, Tesla’s rallies are not so much about mechanics as it is about the psyche. The market doesn’t merely invest in Tesla, it has faith in Tesla, and in today’s markets, that faith is often every bit as effective as cash flow.