Tesla shares have increased by $15.52, or 4.46%, reaching $363.30. They are nearing an important target zone defined by the highs of $367.34 on February 19 and $367.71 on May 29. This area will be key for short-term movements. If Tesla breaks above $367.71, it could gain further momentum, creating a stronger upward trend. The next significant target is the 61.8% retracement from December’s peak of $488.54, which sits at $383.76. Moving past this level could spark a larger rally. However, if the stock struggles at the $367.34–$367.71 zone, it may confirm this as a resistance level and lead to a decline. Year-to-date, Tesla shares are down 10.22% after ending 2024 at $403.84. Still, they have bounced back 68.5% since hitting a low on April 7, showing a strong recovery. Support levels are at $356.25, with the 50% midpoint at $354.39 below that. If the stock breaks these lower levels, it could encourage more selling. Recently, there was a brief change in the rankings of the world’s richest people; Larry Ellison of Oracle briefly overtook Elon Musk but Musk later regained his title. Today, September 11, 2025, we are watching Tesla approach the critical resistance zone between $367.34 and $367.71. A clear break above this area might lead to a significant upward move. Traders looking to take advantage of this could consider buying October call options with a strike price around $370 or $375 to capture potential momentum. Positive sentiment is boosted by expectations for Q3 2025 delivery numbers. Recent reports indicate that production at the Berlin and Austin gigafactories has surpassed targets, with some analysts predicting deliveries could exceed the estimate of 650,000 vehicles. If these projections are correct, they could drive the stock past key resistance and toward the next target of $383.76. On the flip side, if the stock cannot break the $367.71 level in the upcoming days, it could indicate strong selling pressure. Such a pullback might present opportunities for bearish strategies, like buying put options with a strike price near $350. A break below the initial support at $356.25 would further validate this bearish outlook. Despite the strong rally of over 68% from the April lows, the stock is still down for the year. In 2024, similar rallies often faced pullbacks, and ongoing concerns about market inflation could make this rally vulnerable. This pattern suggests that failing at resistance could quickly lead to a decline. With these trigger points clearly defined, using spreads may be a smart way to manage risk. A bull call spread—buying a $370 call and selling a $385 call—could reduce the cost of a bullish position. Conversely, a bear put spread might be appropriate if the rally stalls to protect against a sudden downturn.

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