Tesla Share Price Rallies on Jio, Airtel Tie-Up Buzz, Jumps 12% in Two Sessions
Tesla Stock Surges Amid Market Optimism
Tesla share price has staged an impressive comeback, rising over 12% in just two sessions following reports of potential tie-ups between Elon Musk’s Starlink and Indian telecom giants Bharti Airtel and Reliance Jio. On Wednesday, Tesla shares surged 7.59% to close at $248.09, following a 3.79% gain on Tuesday. In extended trading, the stock climbed another 1.98%, indicating continued buying interest.
This rally comes after a brutal selloff on Monday when Tesla stock plunged 15%, pushing its total decline for the past month to over 30%. Year-to-date (YTD), the stock remains down 35%, weighed down by disappointing sales numbers and investor concerns over CEO Elon Musk’s potential distractions amid speculation about his political ties.
Market Sentiment: A Temporary Rebound or a Trend Reversal?
Tesla’s recent price action reflects extreme volatility in the EV giant’s stock. Analysts warn that while the current rebound is encouraging, the broader trend remains uncertain.
According to Anshul Jain, Head of Research at Lakshmishree Investment and Securities, Tesla stock remains significantly below key technical levels:
- 22% below its 20-day Exponential Moving Average (EMA)
- 31.07% below its 50-day EMA
“This signals extreme downside momentum,” Jain noted. “While a bounce to $268 (10-day EMA) or even $295 (20-day EMA) is possible, the broader trend remains bearish. If selling pressure resumes, key support at $182.82 may be tested in the coming weeks.”
Starlink’s India Expansion Fuels Optimism
One of the major catalysts behind Tesla’s stock rally is Starlink’s expansion into India. Starlink, the satellite-based internet service owned by Elon Musk’s SpaceX, has reportedly entered into agreements with India’s leading telecom operators:
- Reliance Jio: Jio Platforms announced that it will offer Starlink services through its retail and online platforms. It also plans to provide installation and customer support, making the technology accessible to millions of Indian users.
- Bharti Airtel: The telecom major signed a separate agreement with SpaceX to introduce Starlink’s high-speed satellite internet across India.
This development has created excitement among investors, as it signals a major business expansion for SpaceX and its associated companies. However, analysts caution that since both Jio and Airtel are involved, neither telecom giant will have an exclusive partnership with Starlink.
“This collaboration benefits consumers and SpaceX more than Reliance Industries or Bharti Airtel. Starlink gains a large potential market without being tied to one company,” said Avinash Gorakshakar, Head of Research at Profitmart Securities.
Financial Ratios and Performance Overview
| Metric | Value |
|---|---|
| Current Stock Price | $248.09 |
| Two-Day Gain | 12% |
| 1-Month Performance | -30% |
| YTD Performance | -35% |
| 20-Day EMA | $295 |
| 50-Day EMA | $268 |
| Key Support Level | $182.82 |
What’s Next for Tesla?
Despite the recent recovery, Tesla faces significant challenges. Declining EV sales, competition from traditional automakers and Chinese rivals, and uncertainty surrounding Elon Musk’s leadership remain major concerns.
However, the Starlink expansion in India could open new business opportunities, potentially boosting investor confidence in Musk-led ventures.
For now, traders should watch how Tesla reacts to key resistance levels ($268–$295) and whether the stock can maintain its upward momentum.
Frequently Asked Questions (FAQs)
1. Why did Tesla’s stock price rise recently?
Tesla shares surged 12% in two days following reports that Starlink is expanding in India through partnerships with Jio and Airtel. The broader US stock market rally also contributed to Tesla’s gains.
2. Is Tesla’s uptrend sustainable?
Analysts remain cautious, as Tesla is still in a downtrend and significantly below key moving averages. While a bounce to $268 or $295 is possible, the overall sentiment remains bearish.
3. What impact does the Starlink deal have on Tesla?
Starlink is part of SpaceX, not Tesla, but positive sentiment around Musk’s business ventures often influences Tesla’s stock price. The expansion into India boosts confidence in Musk-led projects.
4. Should investors buy Tesla stock now?
Tesla remains highly volatile, and investors should be cautious. Traders may look for short-term gains, but long-term investors should wait for clearer signs of a trend reversal.
5. What is the key support level for Tesla?
If selling pressure resumes, Tesla could test $182.82, a critical swing low. Investors should watch price action around this level.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.