Tesla stock has wavered in recent days, but the company continues to benefit from an ongoing rebound in US and European electric-vehicle sales as gasoline prices keep climbing.

Tesla stock fell 0.73% to close at $377.33 on Sept. 24, after finishing the previous session at $380.12, as investors assessed mixed electric-vehicle demand data. Despite the latest pullback, the shares remained well above the lows they reached in late July.

Investors also monitored President Donald Trump's state visit with Chinese President Xi Jinping. The White House hosted Xi and Madame Peng Liyuan for a state dinner on Sept. 24, though the diplomatic event does not independently explain Tesla stock's daily move.

Stronger European EV Demand Offers Support

Tesla stock has surged over the past few weeks, helped by rising expectations that consumers will embrace electric vehicles as gasoline prices jump. The average US gasoline price has climbed to $4.4825, while diesel has soared to $6.5. Those increases stem from the continuing US-Iran, Saudi Arabia-Houthi, and Ukraine-Russia conflicts, and they raise the prospect that drivers may switch to EVs at a faster pace.

Recent data support that view. European EV sales have surged in recent months, rising by more than 52% in August, according to a Reuters report, which found that the region's overall car sales climbed as strong EV demand offset a slump in petrol and diesel. That is a notable result, given that Tesla is the biggest player in Europe's EV business.

The findings align with a separate Bloomberg report that Tesla is expanding its German operations and hiring more than 1,000 additional workers, even as Volkswagen lays off thousands of employees. The contrast underscores how differently EV-focused and legacy automakers are currently positioned in Europe's market.

A similar dynamic is unfolding in the United States. A recent report showed US EV sales rose in August from a year earlier, though they dropped sharply, reflecting a rush of purchases last year ahead of the federal tax credit's expiration. That timing shift makes year-over-year comparisons harder to read on their own.

Tesla also posted strong vehicle deliveries in its most recent quarter, selling more than 480,000 vehicles after producing 450,000 during the period. The surge coincided with a rally in gasoline prices, which peaked above $5 as the crisis escalated.

Roadster Launch Expected Next Week

The next major catalyst for Tesla stock is the launch of the Roadster, a model that has been delayed for years. The debut is expected next week, with the company producing a limited number of vehicles. With the opening run constrained, attention will center on whether the company outlines a path to broader production.

Another crucial catalyst will be third-quarter delivery figures, scheduled for release early next month. Analysts believe deliveries performed relatively well, with China the main laggard. Goldman Sachs analysts expect the company to have delivered 435,000 vehicles, while the Bloomberg consensus stands at 466,000. The roughly 31,000-vehicle gap between those estimates means the print will be judged against a wide range.

Tesla's third-quarter revenue is expected to come in at $27.5 billion, down 2.1% from a year earlier, with the decline reflecting the surge recorded in the same quarter last year ahead of the tax credit's end. Fourth-quarter revenue is forecast to rise 14.4% to $28.5 billion, bringing the full-year figure to $106 billion. There is a chance the company's actual revenues will come in higher than expected.

Technical Analysis

The daily chart shows TSLA has rebounded in recent weeks, climbing from a low of $297 in late July to around $380. The stock has formed an ascending channel and is trading at the middle line, having moved above the 50-day Exponential Moving Average (EMA), while the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicators have continued rising.

According to the analysis, the stock is likely to keep rising as bulls target the key resistance level of $400. A drop below the 50-day EMA at $362 would invalidate the bullish outlook.

This article is for informational purposes only and does not constitute financial or investment advice. Equity investments involve market risk.

This article first appeared on The Market Periodical.