Tesla Sees Best Rally Of 2025 As Musk's Time In Government 'Comes To An End'

Tesla Inc. TSLA is racing toward its strongest monthly performance of the year, with shares up over 22% in May, setting the stage for the best rally of 2025 so far.

The stock is still down 5.9% year-to-date, but if the current pace holds, it will mark the company's biggest monthly gain since November 2024.

A shift in narrative is fueling the sudden turnaround: CEO Elon Musk appears to be back in the driver's seat at Tesla.

Musk Reengages, Market Rejoices

After months of investor concern over distractions due to Musk’s involvement with DOGE (Department of Government Efficiency), analysts are rejoicing that the billionaire is focusing on Tesla's core AI and full self-driving ambitions.

“As my scheduled time as a Special Government Employee comes to an end, I would like to thank President [Trump] for the opportunity to reduce wasteful spending,” Musk tweeted on Wednesday, May 28. “The DOGE mission will only strengthen over time as it becomes a way of life throughout the government.”

…and focusing on Tesla

…have infused renewed enthusiasm among Tesla bulls.

Wedbush analyst Dan Ives called Tesla the “most undervalued AI play in the market right now,” underscoring growing optimism about Tesla's positioning in AI and robotics—not just EVs.

Read Also: Tesla Institutional Investors Demand Elon Musk’s 40 Hours A Week Commitment Amid Company ‘Crisis,’ Urge Succession Plan For Top Execs

Tesla Stock Technical Picture Lights Up

Chart created using Benzinga Pro

From Laggard To Leader

Technically, the momentum is hard to ignore. Tesla shares are now trading at $356.90, sitting comfortably above all key simple moving averages (SMAs). The eight-day SMA ($347.20), 20-day SMA ($322.66), 50-day SMA ($284.17) and 200-day SMA ($301.64) all flash positive signals, suggesting a strong bullish trend.

The MACD (moving average convergence/divergence) indicator at 21.60 reinforces the upside bias, while the RSI (relative strength index) at 67.29 shows the stock is approaching overbought territory — implying potential near-term volatility, but not yet at extreme levels.

Despite a negative 5.9% return year-to-date, Tesla has rallied over 102% in the past 12 months, and May's performance may be the inflection point bulls were waiting for. Still, all eyes are on whether this rally has the legs to continue – or if it's running hot into a potential resistance zone.

• Tesla’s Optimus May Be The First Humanoid Robot To Achieve High Volume And Tech Scale, Says Nvidia CEO Jensen Huang: ‘… Likely To Be The Next Multi-Trillion Dollar Industry’

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