Tesla’s Rally Accelerates
Tesla shares (TSLA) continued their run higher Tuesday, jumping nearly 4% to above $440, poised to close at a new 2025 high. The stock has climbed in nine of the last ten sessions, rebounding sharply after a sluggish start to the year.
In the past month, Tesla is up more than 30%, helped by a string of bullish catalysts:
- CEO Elon Musk’s $1 billion share purchase last week.
- A new compensation proposal for Musk.
- Plans to expand the company’s Robotaxi program beyond Austin.
Wall Street Backs the Run
The rally gained another boost after Piper Sandler analyst Alexander Potter hiked his price target on Tesla to $500 from $400.
Potter, who recently visited China, said domestic EV leaders like Xiaomi (1810.HK), Li Auto (LI), and Leapmotor (9863.HK) may have surpassed Tesla in assembly, but they still rely on Tesla for AI and self-driving innovation.
“When it comes to ‘real world’ AI, these companies look to Tesla for guidance — not the other way around,” Potter wrote, citing one EV maker that credited Tesla with going “from 0 to 1.”
He also pointed to Tesla’s latest Full Self-Driving (FSD) version as a potential game-changer and projected a record Q3 for sales.
Robotaxi Reality Check
While Musk has pledged to expand Robotaxi services beyond Austin into Nevada, Florida, and California, regulatory hurdles are slowing progress.
A Reuters report revealed that despite Musk’s claim of an imminent Bay Area rollout, Tesla has not applied for the necessary state permits — a process that can take years of supervised testing. Instead, Tesla is reportedly planning invite-only rides in human-driven vehicles under a limousine-style permit that doesn’t allow on-demand hailing.
WSA Take
Tesla’s latest rally shows how quickly sentiment can flip when Wall Street smells AI and autonomy upside. A month ago, the stock looked stuck in neutral. Today, between Musk’s personal buy-in, fresh analyst upgrades, and Robotaxi hype, Tesla is once again at the center of the EV conversation.
The company’s challenge now is turning that momentum into execution. The Robotaxi rollout faces regulatory bottlenecks, but Tesla’s edge in AI-driven infrastructure gives bulls reason to stay aggressive.
If you missed our breakdown of Elon Musk’s $200B xAI valuation, it’s another piece of the puzzle showing how Musk is positioning himself at the intersection of AI and mobility. For more investor insights, head to the Wall Street Access homepage.
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