Why Tesla’s 60% Surge Should Keep Going Into Summer

Shares of Tesla (NASDAQ:TSLA) Inc. closed just under $350 last week, capping off a blistering rally that has seen the stock climb 60% from its April lows. While it still has ground to cover before revisiting the highs near $500 from last December, momentum is clearly back. The company is starting to look more like Tesla, which energized investors in 2020 and 2021: ambitious, dynamic, and positioned for long-term dominance.

Much of this move began after the company’s latest earnings report in late April. Though the results fell short of Wall Street’s expectations on a headline basis, the update cleared a cloud of uncertainty over the stock. Since then, sentiment has flipped decisively, with retail and institutional investors jumping back in.

Musk Refocuses and Markets Approve

In addition to the shift in sentiment post-earnings, CEO Elon Musk’s announcement that he would be stepping back from White House-related efforts to dedicate more time to Tesla has also helped calm investor nerves. With confidence restored in leadership focus, the narrative quickly returned to the company’s product pipeline, growth initiatives, and competitive advantages.

The improving mood has now been supercharged by broader macro headlines, specifically around U.S. and China trade tensions. Developments suggesting a rollback of certain tariffs have helped power the latest leg higher, particularly given how sensitive Tesla’s supply chain and demand dynamics are to the global EV ecosystem.

$1 Trillion Market Cap Reclaimed

Tesla’s valuation has surged in tandem with its share price. Last week, the company reclaimed a $1 trillion market cap for the first time in months, adding psychological weight to the rally. Market cap milestones don’t impact fundamentals directly, but they do influence narrative, and the narrative right now is one of resurgence.

At the technical level, shares are trading in a strong uptrend. The stock has cleared key heavy-volume resistance points, and momentum indicators continue strengthening. The RSI is now around 70, indicating overbought conditions, but not yet at the type of extended levels that would typically flash warning signs. This momentum could extend through the summer with the bulls firmly in control.

Analysts Are Getting Louder

The recent wave of analyst upgrades adds further weight to the bullish outlook. Last week, Mizuho’s Vijay Rakesh boosted his price target on Tesla to $390 from $325, maintaining an Outperform rating. Rakesh cited the positive impact of easing trade tensions, particularly concerning electric vehicle parts imports, as a key driver.

While he flagged the potential headwind of reduced EV subsidies in the U.S., he maintained a confident view of Tesla’s macro setup and growth path in the automotive space.

This echoes Piper Sandler’s move earlier this month when they issued a fresh $400 target on the stock. Taken together, these revised outlooks point to a growing consensus: Tesla’s upside may only just be reawakening.

Even after the recent run, these targets imply 12% to 15% additional upside, with some bulls calling for more if economic conditions remain favorable.

Room to Run Into the Summer

One of the most encouraging aspects of Tesla’s rebound is how balanced the rally has been. This isn’t just a short squeeze or a speculative pop; it’s a sustained move supported by technicals, macro tailwinds, and analyst validation. If trade headlines continue to improve, and the company delivers on growth metrics in the second half of the year, the stock could continue pushing toward those higher price targets.

While the relative strength index is something to monitor, the current positioning suggests any short-term pullback could be shallow and met with eager buying. With institutional sentiment turning more positive and Tesla returning to a leadership role in tech, investors are beginning to price in a scenario where the stock retests and potentially surpasses its previous highs.

Why This Rally May Still Be in Its Early Stages

Tesla has already made a 60% move in a matter of weeks, but the catalysts behind the rally suggest it may still be in the early days. With the $1 trillion milestone back in the rearview mirror, improved U.S.–China trade dynamics, and price targets climbing from top-tier analysts, this is a stock with the wind at its back.

Momentum, macro, and Musk are all lining up, which could make Tesla one of the standout performers of the summer.

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