What's Going On With The Boom In Tesla Stock Today?

Tesla Inc (NASDAQ:TSLA) shares are trading higher on Monday. CEO Elon Musk took to social media to spotlight the company’s advanced AI chip capabilities.

What To Know: Musk noted on X that Tesla has long had a dedicated chip and board engineering team, which has already designed and deployed millions of AI chips across its vehicles and data centers.

“These chips are what enable Tesla to be the leader in real-world AI,” Musk said. “The current version in cars is AI4, we are close to taping out AI5 and are starting work on AI6. Our goal is to bring a new AI chip design to volume production every 12 months.”

Musk underscored the scale of Tesla’s ambitions, saying the company expects to eventually produce chips at higher volumes than all other AI chips combined.

“These chips will profoundly change the world in positive ways, saving millions of lives due to safer driving and providing advanced medical care to all people via Optimus,” Musk said.

TSLA Analysis

The stock’s recent climb has brought it closer to its 50‑day moving average of $433.55, though it’s still trading about 3% below that level. Year‑to‑date, shares are up 10.9%, marking a solid rebound from earlier lows.

Technical signals are mixed. The relative strength index (RSI) is at 38.25, a neutral reading that shows the stock isn’t overbought or oversold. The 200‑day moving average sits at $338.83, well below the current price and pointing to a longer‑term bullish trend. At the same time, the nearby 50‑day average could act as resistance.

Support is set at $382.78, which may help cushion any pullback. Resistance is at $428.94, and a breakout above that level could open the door to a retest of the recent highs near $488.53.

With a market cap of $1.30 trillion, Tesla ranks among the biggest names in both the auto and tech sectors. Its stock performance will continue to be shaped by broader economic trends and investor sentiment, especially as it moves through key technical levels.

TSLA Price Action: Tesla shares were up 6.87% at $417.94 at the time of publication on Monday, according to Benzinga Pro. The stock is trading within its 52-week range of $214.25 to $488.53.

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