Tesla Inc. (NASDAQ:TSLA) has seen its stock rocket 76% since Nov. 5, coinciding with Donald Trump's presidential election victory. While the rally marks a triumphant rebound, driven partly by CEO Elon Musk's political connections and Tesla's tech-forward advances, the stock's technical indicators hint at potential turbulence ahead.

Tesla Stock: Bullish Momentum Meets Overbought Risks

Tesla stock remain in strongly bullish territory, supported by its position above key moving averages:

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• Eight-day SMA at $396.64 vs. share price of $422.80 is a clear bullish signal.
• 20-day SMA at $363.81 and 50-day SMA at $299.80 reinforce this bullish narrative.
• Even the 200-day SMA at $224.33 underscores long-term upward momentum.

Adding to the optimism, Tesla stock's Moving Average Convergence Divergence (MACD) indicator stands at a robust 32.49, signaling a continuation of upward momentum.

Yet, a Relative Strength Index (RSI) of 76.57 suggests Tesla is overbought and ripe for potential pullbacks.

Read Also: Elon Musk's New Affinity To Trump Aimed At Pushing Tesla's EV Deliveries, Says Jay Leno: Researcher Says It 'Doesn't Match Up' With Data

Musk's Political Boost

Tesla's surge has not only been technical but also political. Musk's vocal support for Trump and his substantial campaign contributions have solidified his influence, potentially paving the way for looser regulations and a federal approval process for autonomous vehicles.

This "Trump bump" has fueled investor sentiment, with analysts like Craig Irwin of Roth MKM attributing the rally to Musk doubling Tesla's credibility and demand pool. Others, including Goldman Sachs and Morgan Stanley, revised their price targets upward, factoring in Tesla's expanding AI opportunities.

Autonomy, Innovation Propel the Narrative

Tesla's recent advancements, such as the launch of the "Actually Smart Summon" feature in China, further bolster its position in the competitive EV landscape. By enhancing obstacle detection and navigation, Tesla is strengthening its Full Self-Driving package, a vital subscription-based revenue stream.

Time To Cash Out?

Despite the record highs, the stock's RSI and selling pressure indicate a cautious outlook. Investors riding Tesla's meteoric rise may want to assess their risk tolerance. While bullish signals dominate, the overbought status and broader market factors warrant vigilance.

For now, Tesla's technical and political tailwinds make it a fascinating story — but not without risks. Whether to hold or cash out hinges on how much faith investors place in Musk's ability to sustain momentum amid an overbought market.

• Here's How Much $1,000 Invested In Tesla Stock Today Will Be Worth If Cathie Wood's Price Prediction Comes True In 2029

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