Tesla Jumps 10% On China FSD Optimism, Tariff Easing Hopes

Tesla Inc. TSLA stock is roaring back after a steep decline, surging over 10% on Monday morning as buyers stepped in following a recent pullback.

The stock had been under heavy selling pressure, but renewed enthusiasm around its Full Self-Driving (FSD) rollout in China, easing tariff concerns, and technical support levels appear to be fueling the rebound.

Chart created using Benzinga Pro

TSLA Stock: Buyers Step In, But Challenges Remain

Despite Monday's 10% pop, Tesla's stock is down 28% year to date and 17% over the past month. The bearish setup is undeniable:

• Tesla stock trades below its five-day, 20-day and 50-day exponential moving averages.
• The eight-day simple moving average (SMA) of $243.48 and 20-day SMA of $258.95, signal some bullish momentum, with the current price at $273.00.
• However, Tesla's 50-day SMA ($332.89) and 200-day SMA ($284.66) all point to a bearish trend.
• The Moving Average Convergence Divergence (MACD) indicator at a negative 24.83 reinforces the bearish sentiment.
• The Relative Strength Index (RSI) has risen back at 48.01, suggesting Tesla stock seems to have dodged the oversold territory, for now at least.

Read Also: US Business Activity Rebounds As Services Growth Outpaces Forecasts, Yet Cost Pressures Intensify

FSD In China & Tariff Relief: Key Catalysts

Tesla's FSD rollout in China could provide a much-needed catalyst for further upside. While sales were expected, the big question is whether Chinese consumers will pay a premium for it, given that local rival BYD Co Ltd BYDDF offers driver-assist tech for free. If FSD adoption gains momentum, it could significantly boost Tesla's competitive position in the region.

Additionally, investors are cheering reports that former President Donald Trump is backing off some broad tariff threats made just weeks ago. The potential easing of trade tensions is seen as a positive for Tesla, which has significant exposure to China's electric vehicle market.

What's Next For TSLA?

Tesla's ability to sustain its rally will likely depend on whether buying pressure continues, and if fundamental catalysts such as the FSD launch and tariff relief can outweigh bearish technical signals. The upcoming first-quarter delivery report on April 2 will be another key moment for investors to watch.

With strong early trading momentum and buyers stepping in, Tesla's recovery is gaining traction. The next test?

Whether this surge can break through key resistance levels and turn the tide for good.

Read Next:

• Elon Musk 10 Years Ago Called Autonomous Driving ‘A Solved Problem’—Said ‘We Will Be There In A Few Years’

Image created using artificial intelligence via Midjourney.