Closing gap near $430 to confirm Tesla’s next leg higher

By the end of yesterday’s trading session, Tesla’s stock (TSLA) surged by approximately 7%, reaching an over-two-month high. Last week, prices plummeted to the uptrend line, and the subsequent rebound confirms that this support level is a tough nut to crack. Buyers may now target closing the gap formed between $425 and $430 on November 12–13. If they manage to do this, the way toward autumn’s peaks in the $460–$470 range will open.

Over the past seven days, Tesla faced significant bearish pressure, sending the RSI and other technical indicators to the edge of oversold territory. The MACD was no exception, falling into the negative zone. This positioning boosts hopes for another wave of growth in the tech giant’s shares. The rebound scenario remains intact as long as the price holds above the trendline, which is underpinned by the 100-day moving average near $390.

Active buying was triggered by Elon Musk promoting recent developments in both hardware and software for autopilot technology. The company's CEO said that the next generation of chips (AI5) is nearing completion and is scheduled to begin rolling out in mid-2027. Unlike most automakers, Tesla will handle production independently. Despite all the challenges and significant investments required, this approach could help the firm to customize the chips to meet its specific needs.

Autopilot implementation is progressing more slowly than Musk might like, but there are signs of improvement. Yesterday, the Netherlands Vehicle Authority (RDW) announced that it will decide on approving Tesla's autonomous driving technology in February after conducting the necessary tests. If approved, other EU members could implement it immediately without reexamination in each individual country. A similar certification procedure for Tesla's autopilot in China is scheduled for early 2026.

Consider the following trading strategy:

Buy TSLA at the current price, with Take profit 1 at $430, Take profit 2 at $460, and Stop loss at $390.