Tesla stock soars to record high today: What's driving TSLA rally?
Tesla stock record high: Tesla shares have staged an impressive comeback, turning what began as a challenging year for investors into a reason for celebration. After suffering a steep 36% drop in the first quarter, its worst stretch since 2022, Tesla stock has surged, closing at an all-time high of $489.88 on Tuesday, up 3.1% for the day and now 21% higher for the year, as per a report. The previous intraday high of $488.54 was reached nearly a year ago, and the last record closing price was $479.86, as reported by CNBC.
TSLA Stock Surge to All-Time High After Elon Musk Says Tesla Tests Fully Driverless Tesla Vehicles in Austin
The rally comes amid news that CEO Elon Musk said that the EV giant has been testing fully driverless Tesla vehicles in Austin, Texas, months after starting a pilot program with safety drivers. The automated driving systems being tested are not yet widely available, and safety questions remain. Still, investors are optimistic that the company may finally deliver on its long-promised robotaxi service through a software update.
Tesla’s Market Cap Hits $1.63 Trillion
Tesla’s market capitalization has climbed to $1.63 trillion, making it the seventh-most valuable publicly traded company, just ahead of Broadcom and behind giants like Nvidia, Apple, Alphabet, Microsoft, Amazon, and Meta, as per the CNBC report. Elon Musk’s personal net worth now stands at around $684 billion, surpassing Google co-founder Larry Page by more than $430 billion.
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Tesla’s Roller-Coaster Year: Political Backlash and Sales Decline
Despite this recent surge, Tesla’s year has been a roller-coaster. Musk’s political activities, including his work with US president Donald Trump’s Department of Government Efficiency and endorsements of far-right figures, fueled a consumer backlash that affected Tesla’s brand and sales. In the first quarter, Tesla reported a 13% drop in deliveries and a 20% decline in automotive revenue. The second quarter saw a partial recovery in stock price, but sales continued to lag, with auto revenue down 16%, as per the CNBC report.
The second half of 2025 has been stronger. In October, Tesla posted a 12% rise in third-quarter revenue as buyers rushed to take advantage of a federal EV tax credit before it expired. The stock jumped 40% during the period.
Business challenges remain. The loss of the federal tax credit, continued backlash against Musk, and increased competition from lower-cost EVs by companies like BYD, Xiaomi, and Volkswagen have weighed on sales. Tesla’s more affordable Model Y and Model 3 variants, introduced in October, have yet to boost US and European sales significantly, with Cox Automotive reporting that US sales fell in November to a four-year low, as per the CNBC report.
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Tesla Price Target: Analysts Remain Bullish on Tesla Stock
Still, analysts remain bullish. Mizuho recently raised its Tesla price target from $475 to $530 and maintained a buy rating, citing improvements in Tesla’s Full Self-Driving (FSD) technology that could accelerate the rollout of its robotaxi fleet in Austin, San Francisco, and potentially expand without human safety supervisors sooner than expected.
Currently, Tesla operates its Robotaxi-branded ride-hailing service in Texas and California with human drivers or safety supervisors on board, but the company’s latest tests hint at a future fully autonomous fleet.
FAQs
How much has Tesla stock gained in 2025?
The stock is up 21% so far this year.
What recent developments helped Tesla stock rally?
Elon Musk announced testing of fully driverless Tesla vehicles in Austin, Texas.