Tesla's Stock Soars Amid Autonomous Driving Advancements and Regulatory Shifts

Why Tesla Stock Just Had Its Best Week Since November

Musk on Tuesday said he would soon be stepping back from his work with the Department of Government Efficiency, reassuring investors concerned it is affecting Tesla's brand and Musk's leadership. Tesla (TSLA) stock posted its best week since November's presidential election as investors looked ahead to a future with looser autonomous car regulations and a more focused CEO. Tesla shares soared nearly 10% on Friday after the Department of Transportation released an Automated Vehicle Framework intended to relax regulatory standards. The stock gained 18% this week, easily its best week this year and its biggest weekly gain since rising nearly 30% the week Donald Trump was re-elected. Shares rose more than 4.5% on Tuesday amid a broad stock rally driven by optimism that the Trump administration will lower the steep tariff rates it imposed earlier this month. The stock's ascent picked up pace on Wednesday after Musk assured investors that, starting in May, he would spend less time leading President Trump's Department of Government Efficiency, a position that investors worry has both distracted Musk and damaged Tesla's brand. Musk's decision to re-focus on Tesla offset otherwise bleak quarterly results. The electric vehicle maker reported a 20% decline in automotive revenue, narrower margins, and a nearly 40% decline in adjusted earnings. It also declined to issue full-year guidance in light of the uncertainty surrounding tariffs and the overall economic outlook. In the near term, the company faces a bumpy road, with tariffs expected to drive up manufacturing costs and, in the event of a recession, curb consumer spending. The company could also struggle to shake its association with President Trump, whose unpopularity abroad has contributed to a sharp drop in Tesla sales even as total EV sales have risen. Analysts at several firms, including JPMorgan and Bank of America, lowered their estimates of Tesla's full-year earnings after Tuesday's disappointing numbers. At the same time, several left their price targets unchanged, reflecting Wall Street's faith in Tesla's ability to overcome near-term headwinds. Musk has said Tesla's value -- he has forecast it will be "the most valuable company in the world and probably by a long shot" -- has as much, if not more, to do with its development of AI, autonomous driving, and robotics than the electric vehicles that account for the bulk of its revenue today. On Tuesday's earnings call, Musk reiterated some ambitious timelines for the rollout of self-driving cars, robotaxis, and humanoid robots.

Tesla Surges 10% Friday, On Track For 2025's Best Week As Robotaxi Hype Builds - Tesla (NASDAQ:TSLA)

Tesla Inc TSLA stock surged 10% to $285.50 Friday afternoon, heading to its best weekly performance of 2025 with a 24% gain, even as broader markets paused a three-day rally amid renewed U.S.-China trade uncertainty. What To Know: Investor enthusiasm around Tesla this week was fueled by a mix of policy support and strategic company moves. U.S. Transportation Secretary Sean Duffy announced a new regulatory framework aimed at easing development hurdles for autonomous vehicles, seen as a win for Tesla's robotaxi ambitions. Meanwhile, Tesla rolled out aggressive new promotions to revive sluggish domestic sales, including free Full Self-Driving transfers and 0% APR financing on select models. These incentives arrive as Tesla battles falling demand and a 71% plunge in first-quarter profits. The company also introduced a lower-cost Cybertruck and reaffirmed plans to release affordable models in 2025. Despite the weak quarter, analyst firms like Piper Sandler and Wedbush remain bullish, maintaining targets of $400 and $350 respectively, citing Tesla's potential in autonomy and new product launches. However, some investors, like Gary Black, voiced skepticism about the robotaxi rollout's near-term valuation impact, calling the upcoming limited launch in Austin a "non-event." Tesla is also contending with rising insurance costs, vandalism and protests, which it formally acknowledged as risks in a new SEC filing. Nonetheless, optimism persisted with 2025's best week for Tesla shares as the company plans a broader rollout of its supervised ride-hailing service and a focus on production ramp-ups for its next-generation vehicles. With the regulatory environment evolving and Tesla shifting its marketing approach, the coming months could prove pivotal for the EV giant's trajectory. Read Also: AT&T Shares Dip Following T-Mobile's Post-Earnings Selloff: What's Going On? How To Buy TSLA Stock Besides going to a brokerage platform to purchase a share - or fractional share - of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument. For example, in Tesla's case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment. According to data from Benzinga Pro, TSLA has a 52-week high of $488.54 and a 52-week low of $166.37. Read Also: Cantor Equity Partners (CEP) Stock Is Up 200% This Week: What's Happening? Image created using artificial intelligence via Midjourney. TSLATesla Inc$282.558.88%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum89.19Growth45.57Quality94.90Value10.67Price TrendShortMediumLongOverviewGot Questions? AskWhich EV manufacturers may benefit from Tesla's rise?How will robotaxi regulations impact competitors?Could insurance companies see growth due to EVs?What ETFs could leverage Tesla's performance?How might auto suppliers fare with Tesla's expansion?Which tech firms could benefit from autonomous vehicle tech?Are traditional car makers at risk from Tesla's innovations?Could charging infrastructure companies see increased demand?What impact will promotional strategies have on market share?How might consumer spending trends affect Tesla's sales?Powered ByMarket News and Data brought to you by Benzinga APIs

Why Tesla Stock Surged Higher Friday | The Motley Fool

Tesla (TSLA 3.40%) stock is ending the week on a high note. Shares of the electric vehicle (EV) leader surged as much as 5% higher today as investors anticipate good things ahead. Ironically, some of the optimism came from a recent announcement from a competitor in self-driving technology. Tesla is on the verge of finally displaying its technology for fully autonomous driving vehicles. That's less than one month away, and has investors piling into the shares. As of 2:38 p.m. ET, the stock was trading near the day's highs, up 4.7%. That's helped give the stock a nearly 10% gain just over the last month. Tesla doesn't have any fully autonomous, driverless vehicles on the road. One would think the competition is way ahead, as Alphabet's Waymo is currently generating revenue from its robotaxi service, providing over 250,000 driverless rides per week. Yet a partnership announced by Waymo this week indicates that Tesla may really have the advantage. Tesla plans to finally have driverless vehicles on the road in Austin by next month. It then plans to add niche cybercabs to its vehicle fleet in the coming months. Waymo is now partnering with Toyota to help deploy its technology to more cars on the road. That would provide more data for artificial intelligence (AI) models to train and improve self-driving cars. That's exactly what Tesla has already been doing with its millions of EVs and massive AI infrastructure investments. Tesla has been making large investments to grow its AI compute power. In its recent first-quarter update, it noted, "AI is a major pillar of growth for Tesla." One beneficiary of that will be its driverless vehicle plans. Investors are now anticipating that launch, which is just weeks away. Investors are getting ahead of a successful showing of its fully autonomous technology. If that isn't on schedule or as impressive as expected, though, expect shares to plummet from here.