Tesla Stock TSLA to Break Above $500 Soon on Autonomic Driving Ambition
As investors rally behind concrete advancements toward completely autonomous driving and the long-term potential of a software-driven growth
Quick overview
- Tesla shares reached an all-time high of $491, driven by renewed confidence in its autonomous driving roadmap.
- CEO Elon Musk announced the start of fully driverless vehicle testing in Austin, Texas, enhancing investor optimism about Tesla's future.
- The company's market capitalization now stands at approximately $1.63 trillion, solidifying its position as a leading technology-driven automaker.
- Despite earlier challenges, Tesla's stock has surged 40% since October, reflecting a shift in focus towards long-term innovation.
Live TSLA Chart
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As investors rally behind concrete advancements toward completely autonomous driving and the long-term potential of a software-driven growth engine, Tesla has returned to record territory.
Tesla Hits New Highs on Autonomy Breakthrough
Tesla shares surged to a fresh all-time high of $491, extending a powerful rally driven by renewed confidence in the company’s autonomous driving roadmap. The move lifted Tesla’s market capitalization to roughly $1.63 trillion, reinforcing its status as one of the world’s most valuable publicly listed companies and reasserting its leadership at the intersection of technology and transportation.
TSLA Chart Weekly – Marching Higher
Driverless Testing Rekindles Long-Term Optimism
The latest catalyst came from CEO Elon Musk, who confirmed that Tesla has begun testing fully driverless vehicles in Austin, Texas, without safety monitors inside the cars. For investors, this milestone represents more than a technical achievement—it strengthens the belief that Tesla is approaching a long-promised inflection point in autonomy.
Bullish shareholders see this as validation of Tesla’s strategy to transform its existing fleet into a network of robotaxis largely through software updates. If successful, the shift could unlock a high-margin, recurring revenue model that resembles a technology platform rather than a traditional automaker, dramatically expanding Tesla’s long-term earnings potential.
A Sharp Turnaround From Early-Year Weakness
The rally also highlights how dramatically sentiment has improved since the start of the year. Tesla shares fell sharply in the first quarter amid softer deliveries, pressure on automotive margins, and heightened scrutiny of Musk’s public profile. Those concerns weighed heavily on the stock, leading to a steep pullback.
Momentum began to turn in the second half of the year as revenue growth returned in the third quarter and enthusiasm around Full Self-Driving (Supervised) intensified. Since October, Tesla’s shares have climbed roughly 40%, signaling that investors are once again focusing on long-term innovation rather than near-term volatility.
Fundamentals Support a Growth Narrative
Operational trends remain uneven across regions, with softer demand in parts of the U.S. and Europe offset by stronger performance in China. Tesla continues to invest aggressively in its future, including a €1.2 billion expansion of battery operations in Germany, reinforcing its commitment to scale and efficiency.
While valuation is elevated, markets appear willing to assign a premium to Tesla’s technology leadership and autonomy ambitions. Looking ahead, continued progress in driverless testing could further reinforce confidence, positioning Tesla for its next phase of growth as autonomy moves closer to commercial reality.
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