Target Tesla Stock Before the Rally Really Takes Off

Core Viewpoint - Tesla Inc has experienced a significant recovery in its stock price during the second quarter of 2025, rebounding nearly 40% after a 35.8% decline at the beginning of the year, indicating a potential for continued bullish momentum as it enters a historically strong month for the stock [1]. Group 1: Stock Performance - Over the past decade, Tesla has been the best-performing member of the S&P 500 Index in June, with an average monthly gain of 11.6% and a higher closing price 80% of the time [2]. - A similar performance in the current quarter could push Tesla's stock price above $400 for the first time since January, surpassing its year-to-date breakeven level [3]. Group 2: Analyst Sentiment - Currently, 23 out of 41 brokerages rate Tesla's stock as a "hold" or "strong sell," with a consensus 12-month price target of $289.20, representing a 20.2% discount to its current price of $362.78 [3]. Group 3: Options Trading - Short-term options traders are purchasing Tesla options at a discount, with the Schaeffer's Volatility Index (SVI) at 63%, indicating low volatility expectations for the near term [5]. - The Schaeffer's Volatility Scorecard (SVS) for Tesla is 80 out of 100, suggesting that the stock has outperformed options traders' volatility expectations over the past year [5].