Tesla (TSLA), the technology and EV specialist firm, gained 6.22% in Friday’s trading after Federal Reserve Chair Jerome Powell suggested rate cuts may come as soon as September. His remarks at the Jackson Hole Economic Symposium hinted that the Fed sees rising job risks and expects tariff-related price pressures to fade. As a result, traders raised the chance of a September cut to 91%, up from 75% before his comments.
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The outlook for easier policy lifted major indexes as investors returned to growth stocks. The Dow Jones Industrial Average (DJIA) closed up 846 points at a record level. At the same time, the S&P 500 (SPY) climbed 1.5% while the Nasdaq (NDX) rose 1.8%. Tesla led the group with its stock closing at $340.01, near the top of the day’s range. The session saw $31.2 billion in trading volume, which was the highest in the market.
Tesla Updates Coincide with Market Optimism on Rates
Alongside the macro news, Tesla has shared new updates that added momentum. CEO Elon Musk posted that the company is training a new Full Self-Driving (FSD) model with ten times more parameters than the current version. He noted that a software release is targeted for the end of September. Moreover, Tesla is expanding its Robotaxi service in Austin, Texas, and is seeking approval to operate in Arizona.
Overall, the rally shows how growth companies benefit when borrowing costs look set to fall. Lower rates tend to increase the appeal of firms with large future cash flows, and Tesla is at the center of that trade.
What Is TSLA’s Stock Price Target?
On the Street, Tesla continues to divide opinions with a Hold consensus rating. The average TSLA stock price target stands at $307.90, implying a 9.44% downside from the current price.
