Tesla Stock Still Climbing after 9% Gains Last Week
Tesla stock is moving upward quickly recently and could continue to gain momentum thanks to some smart business moves.
Quick overview
- Tesla stock has surged 9% last week and is up an additional 4% in Monday trading, reflecting a strong momentum in the tech sector.
- The recent gains are partly attributed to investor optimism following new trade deals and relief over tariffs.
- CEO Elon Musk's announcements regarding the upcoming robotaxi service and changes in AI strategy are also boosting investor confidence.
- Tesla is shifting its AI focus from Dojo to using AMD and Nvidia chips, aiming to enhance the performance and safety of its self-driving technology.
Surprising investors with incredible gains the previous week, Tesla (TSLA) stock is up 4% in Monday trading, keeping up its momentum as tech stocks rally.
Tesla could retain its value as a Magnificent Seven stock after its recent performance. It gained 9% over the course of last week and is up another 4% today. This is the company’s sharpest stock increase since May of this year and could be a turning point.
Why is Tesla stock doing so well right now? A small part of investors’ interest in the stock can be traced to the tech rally that is the talk of the stock market, and that in turn was caused by relief over new tariffs. As the United States government continues to make trade deals with countries that Trump has promised to raise tariffs on, the stock market can operate without much concern in that area.
Tesla stock is also benefitting from CEO Elon Musk’s recent statements about some of the changes coming to the company. Musk says that the robotaxi service will soon be available to the public, and there are plans to extend the service to California.
Big Changes for Tesla’s AI Plans
Previously, Tesla was working with Dojo as its primary AI project, but now Musk has announced that Dojo is shutting down. The company will instead use AMD and Nvidia computing chips for its AI programs.
These will be used in the company’s self-driving cars, and by making the switch, Tesla’s vehicles may be able to react faster. They will also be making use of tested and proven technology that may make riders feel safer using Tesla’s automated car services.
Tesla made changes last week in its AI focus. The company is now going to work on development of inference chips, and these will improve the ability of Tesla’s AI models to function in real time and make decisions on the fly. By concentrating their efforts in this area, Tesla expects its A15 and A16 chips to excel at inference.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save