Why Tesla stock is primed for a ‘face-ripping' rally

Core Viewpoint - Tesla's stock is positioned for a potential aggressive upside move, supported by both technical and fundamental indicators, trading above $450 and showing a nearly 20% year-to-date increase [1][3]. Technical Analysis - The stock has returned to the top of its long-term weekly range and reclaimed a rising trendline that has historically supported major rebounds since early 2025 [3]. - Current momentum is stronger as the stock approaches a heavy supply zone in the mid-$450s, which previously caused sharp reversals [3][5]. - The volume profile indicates limited overhead resistance if the stock breaks through the current price band, suggesting potential for further gains [5]. - Historical patterns show that similar setups have led to rapid rallies, with recent pullbacks maintaining higher lows, indicating firm demand [6]. Fundamental Analysis - In Q3 2025, Tesla achieved record deliveries of 497,099 vehicles and produced approximately 447,000, alongside deploying 12.5 GWh of energy storage, marking the highest figures in the company's history [7]. - Revenue reached $28.1 billion, reflecting a 12% year-over-year increase, while free cash flow hit a record $4.0 billion, with cash and investments exceeding $41 billion at quarter-end [8]. - Despite pressure on margins, the services and energy divisions, particularly Supercharging and Megapack, are contributing a growing share of gross profit, enhancing earnings quality [9]. - Developments in Full Self-Driving technology are raising expectations for monetization, although regulatory scrutiny remains a concern [11]. - Demand for electric vehicles in China remains strong, and Tesla has maintained pricing power in various markets despite competitive pressures from hybrids in the U.S. [11].