Tom Lee Sees Recovery Signal In 'Washed Out' Tesla As Stock Breaks Key Level, Backed By Robotaxi And Optimus Hopes

Tesla Inc. (NASDAQ:TSLA) is drawing renewed investor interest despite recent setbacks, as Tom Lee, Head of Research at Fundstrat Global Advisors, identifies potential recovery signals amid extremely negative sentiment.

What Happened: Lee described Tesla as a “washed out” stock in a post on X on Tuesday, where he shared an analysis by Roy Mattox, Chief Market Strategist at Integrated Financial Strategies.

Mattox revealed that his team initiated a pilot position in Tesla after the stock broke above its 200-day moving average and surpassed the $291.85 pivot point, following a sharp decline.

Mattox acknowledged the move as an “unorthodox” and creative entry, driven not by recent earnings, which he characterized as a “horrible quarter.” Specifically, the investment is based on optimism around Tesla’s upcoming autonomous and robotaxi initiatives, as well as the anticipated rollout of the Optimus robot.

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Why It Matters: The investment comes as the President Donald Trump administration begins easing regulatory hurdles for autonomous driving companies.

The National Highway Traffic Safety Administration is updating regulations to allow domestic autonomous vehicle manufacturers exemptions to U.S. Auto Safety Standards previously reserved for imported vehicles, according to Transportation Secretary Sean Duffy.

These regulatory changes could boost Tesla’s prospects as the company recently launched limited autonomous ride-hailing services in Austin and San Francisco, with Musk promising that “10 to 20” Model Ys will offer paid robotaxi rides starting in June.

Lee previously identified Tesla as a key indicator of broader market recovery, noting the stock has already rebounded despite recent volatility from political scrutiny and concerns over CEO Elon Musk‘s influence.

Price Action: Tesla stock closed at $292.03 on Tuesday, up 2.15% for the day. In pre-market trading, the stock dipped 1.19% to $288.55. Year to date, Tesla shares are down 23%.

According to Benzinga Edge’s Stock Rankings, Tesla is outperforming Lucid Group Inc. (NASDAQ:LCID), Rivian Automotive Inc. (NASDAQ:RIVN), and Nio Inc. (NYSE:NIO) in terms of momentum, despite facing a short- to long-term downward price trend. Sign up for more insights.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.