Invest in Tesla stock with $435 in sight

Tesla shares have been trading within the $380–$435 flat range since mid-May. This trajectory is shaped by several factors. On the one hand, market participants continue to place their hopes not so much on the company’s auto business, but rather on its potential breakthroughs in driverless services, artificial intelligence (AI), and robotics. However, there is a flip side: the stock’s lofty valuation makes it quite vulnerable to any doubts regarding the materialization of these ambitious projects.

Developing autonomous driving remains one of the key positive catalysts. Tesla is currently expanding its robotaxi service in Austin. The rollout of FSD in Europe could be a major driver of future software revenue. This reinforces expectations that the company will spread these technologies across the region, reducing its dependence on the US market. The importance of this step is hard to overestimate, as traders anticipate higher profits from software and robotaxis than from the traditional auto-making segment.

Nevertheless, risks remain. The company previously shared some controversial safety data regarding FSD with European regulators, so further expansion of the technology may face scrutiny. Besides, competition is heating up: Mobileye has plans to launch its own US robotaxi service in 2027, while China’s BYD continues to spread aggressively across the globe, aiming to become the world's largest automaker within five years. These developments pose significant challenges for Tesla in the electric vehicle (EV) sector, particularly in China and Europe.

Given all the aforementioned factors, the fundamental picture remains fairly positive. The technical setup suggests a good chance of further upside, with the next target at $435.

The ultimate recommendation is to buy Tesla shares at the current price, aiming for $435 within one month. To mitigate the risk of adverse market movements, place a Stop Loss order just below support, at $380.