- Tesla stock price has reclaimed $320 support and the EU-US trade deal could help Tesla recover lost ground in the Eurozone.
Tesla stock price rose sharply in the week’s opening session on Monday, establishing support above the $320 mark after rising by more than 6% in the first hour of trading. The momentum cooled shortly thereafter, but the stock remained on the upside trajectory, trading at $327 at the time of writing.
The EV maker’s stock has received new tailwinds after it announced a $16.5 billion deal to for Samsung to supply it with next-gen AI6 chips. The chips will be produced at the newly-built manufacturing facility in Austin, Texas. This signals a new milestone for Tesla (NASDAQ: TSLA) and underlines the validity of its blend of EV business and with the fast-growing AI technology, which promises a new growth frontier.
The new development has neutralised the sour sentiment created by the company’s weak Q2 earnings. Also, it comes in the nick of time when the company just launched its autonomous taxi services in Austin, Texas and has indicated plans to expand fast. Furthermore, the chips will be a core component of not only the robotaxi side of business, but also AI data centers and Optimus humanoid robots will depend on them for functionality.
Elsewhere, the EU-US trade deal agreed over the weekend could potentially help Tesla recover lost ground in the Eurozone. The two trading blocks agree a 15% tariffs on EU exports entering the US, avoiding an earlier 30% rate threatened by President Donald Trump, which could have potentially triggered a trade war. However, Tesla CEO Elon Musk has already warned of “tough quarters” ahead, with the US EV tax credits set to end after September 30th in line with Trump’s Big Beautiful Bill.
Tesla Stock Price Prediction
Tesla stock price pivot mark is at $320 and the momentum calls for further upside. That will likely see the first resistance encountered at $330. However, a stronger momentum will break above that level and could push the action higher and test $340.
Conversely, breaking below $320 will shift the momentum to the downside. With the sellers in control, the stock will likely find the first support at $312. However, an extended control by the sellers will break below that level and potentially test $303.
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