Tesla Stock Tests Resistance With China Strategy in Focus
Tesla shares regained strength after dovish remarks from the Federal Reserve and fresh optimism around autonomous driving reignited...
Quick overview
- Tesla shares surged 5% following dovish remarks from the Federal Reserve, with additional gains of 2% on Monday.
- The stock's recovery is supported by technical indicators suggesting a potential bullish reversal, with a key resistance level at $350.
- Elon Musk announced advancements in Tesla's Full Self-Driving model, which could significantly enhance the company's autonomy capabilities.
- Tesla is adapting its strategy in China by integrating local AI models to meet regulatory demands and consumer expectations.
Live TSLA Chart
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Tesla shares regained strength after dovish remarks from the Federal Reserve and fresh optimism around autonomous driving reignited investor enthusiasm.
Fed Signals Spark a Rally
Tesla (NASDAQ: TSLA) posted a sharp rebound last Friday, rising 5% after Federal Reserve Chair Jerome Powell struck a softer tone at the Jackson Hole Symposium. His dovish remarks sent the U.S. dollar lower and boosted risk assets globally, giving Tesla an additional lift. On Monday, the momentum carried through, with the stock climbing another 2%.
Technical Picture Supports the Recovery
The past few weeks have been volatile for Tesla. After dropping below $300 in early August, shares quickly regained support at the 100-day simple moving average and rebounded toward $349 by mid-month. Moving averages have acted as a base, forming a series of higher lows that suggest a potential bullish reversal. To confirm stronger upside, bulls need a clean break above the early August resistance near $350. Such a move could align with the Nasdaq edging toward record highs, amplifying momentum.
Musk Highlights Advances in Autonomy
Investor excitement was further boosted by Elon Musk’s announcement that Tesla is training a new Full Self-Driving (FSD) model with nearly ten times more parameters than the current version. Alongside progress in video compression technology, Musk confirmed plans to roll out the upgraded FSD system by the end of September. If delivered, this milestone could mark a major step forward in Tesla’s push toward full vehicle autonomy.
Navigating Challenges in China
China remains a critical battleground for Tesla. To adapt to local demand and regulatory hurdles, the company is shifting strategies. According to Bloomberg, Tesla will integrate domestic AI models such as DeepSeek and ByteDance’s Doubao into its vehicles sold in China. Unlike U.S. models that rely on Musk’s xAI Grok, regulatory restrictions make its deployment difficult in China.
Doubao, operating on ByteDance’s Volcano Engine cloud, will handle low-latency voice controls for navigation, media, and climate, while DeepSeek Chat will provide advanced conversational capabilities. Local AI integration also ensures compatibility with essential Chinese apps like WeChat and Baidu Maps, which domestic users expect.
Balancing Global Growth and Local Strategies
Tesla’s latest rebound highlights the interplay of global and regional forces: dovish Fed policy, optimism in self-driving advancements, and a tailored China strategy. While breaking above resistance could unlock fresh upside, much depends on execution — from rolling out FSD globally to regaining lost ground in China’s competitive EV market.
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