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Key Takeaways
- Tesla’s stock climbed to an all-time high Tuesday, setting its first record in a year, as investors buy into the electric vehicle maker’s plans for autonomous driving, robotics, and AI.
- Tesla launched a pilot of its robotaxi program in Austin earlier this year, and analysts say improvements to its self-driving software could allow the program to expand quickly.
Tesla’s (TSLA) stock is powering up, notching its first record high in a year.
The shares added about 3% Tuesday to finish near $490, their highest level since last December’s close at $479.86.
The electric vehicle maker’s stock has been on a strong upward run in recent months, more than doubling from their lows in March as enthusiasm for CEO Elon Musk’s renewed commitment to the company and plans for autonomous driving, robotics, and AI have driven a comeback.
Over the weekend, Musk posted on social media that Tesla is testing fully autonomous robotaxis, which could be a sign that safety monitors are on their way out. Tesla launched a pilot program of its self-driving robotaxis in Austin, Texas earlier this year, but still had a Tesla employee in the driver’s or passenger’s seat for rides until recently.
Bullish analysts at Mizuho on Monday hiked their price target for the stock to $530 from $475, writing their research indicates the effectiveness of Tesla’s self-driving software continues to improve, and has reached the ability to operate over 99% of the time without a driver having to intervene. The analysts said that the software’s improvement could lead to faster expansion of the robotaxi program, and remove the need for a safety monitor.
Why This Matters to Investors
It’s been a challenging year for Tesla’s electric vehicle sales. However, the company’s developments in self-driving software, robotaxis, humanoid robots, and AI have helped boost enthusiasm for its stock.
Wedbush analysts, with a Street-high target of $600, said this week that they “believe Tesla is taking major steps in advancing its AI Revolution path with autonomous and robotics front and center heading into 2026.”
Other analysts on Wall Street aren’t as convinced, however. Of the 12 analysts with current ratings tracked by Visible Alpha, just six or about half consider the stock a “buy,” compared to three “hold,” and three “sell” ratings. Their average target around $400 would suggest an 18% decline from Tuesday’s close.
This article has been updated since it was first published to reflect more recent stock prices.
