Tesla (TSLA) Soars 4.77% on U.S.-China Tension Ease

Tesla (TSLA) surged 4.77% intraday, marking its highest level since February 2025, with a 4.07% gain for the day and a 26.27% increase over the past six days.

The strategy of buying TSLA shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 7.5% annualized gain. This approach captured some of Tesla's volatility, which was beneficial as the stock experienced significant fluctuations. However, the returns were relatively conservative compared to holding the stock for a longer period or investing in other growth-oriented assets.

One of the primary drivers behind Tesla's recent stock price surge is the easing of tensions between the U.S. and China. This geopolitical development has positively impacted market sentiment, contributing to a rally in Tesla's stock price.

Technical signals also play a significant role in Tesla's recent performance. The Relative Strength Index (RSI) has broken above 70, suggesting the stock might be overbought. Additionally, Tesla shares have climbed above the upper Bollinger band, indicating feverish buying. These signals often precede a modest correction as traders and investors lock in profits.

Reports that Tesla's board is exploring new ways to compensate CEO Elon Musk may also have contributed to recent gains in the stock price. Such corporate governance developments can influence investor perceptions and confidence, driving the stock higher.