Why is Tesla stock surging today

This article first appeared on GuruFocus.

Tesla (NASDAQ:TSLA) shares climbed about 5% in morning trading Monday as investors weighed a production shift at its Texas factory and an expansion of its robotaxi operations.

The electric vehicle maker said it expects to end Cybertruck output at Gigafactory Texas by mid-2027 and will refund deposits on certain orders. The move appears to free factory space and capital for the company’s Cybercab robotaxi program, which it has placed at the center of its growth plans.

Separately, Tesla said it has begun unsupervised robotaxi service in San Antonio, extending its presence across parts of Texas and Florida. Unsupervised operation means vehicles run without a safety driver aboard.

Reports about TeraFab, a chipmaking venture tied to SpaceX that is expected to target large-scale semiconductor production in Texas by 2032, also drew attention to Tesla’s artificial intelligence ambitions.

The gains came as major U.S. indexes moved higher, lifting growth and technology shares following last week’s post-election decline.