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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Why Is Tesla (TSLA) Stock Soaring Today

TSLA Cover Image

What Happened?

Shares of electric vehicle pioneer Tesla (NASDAQ: TSLA) jumped 5.9% in the morning session after the stock extended its positive momentum on a wave of positive news including growing optimism around its autonomous driving technology. 

Investor optimism was bolstered by advancements in its Full Self-Driving (FSD) technology and the expansion of its robotaxi ambitions, highlighted by official approval from the Nevada DMV to start testing autonomous vehicles on public roads. Additionally, the company launched its new Megapack 3 and Megablock energy storage systems, which promise to reduce installation times and costs. The rally was also supported by broader market strength, as Wall Street indexes reached record highs amid expectations of a Federal Reserve interest rate cut.

Is now the time to buy Tesla? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Tesla’s shares are extremely volatile and have had 46 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 7 days ago when the stock gained 2.5% on the news that the company unveiled a new proposed compensation plan for CEO Elon Musk that could be worth up to $1 trillion. 

The long-term performance award, which shareholders will vote on in November, is designed to keep Musk at the helm for the next decade. The plan ties his compensation to a series of ambitious goals, including increasing Tesla's market value to $8.5 trillion. To receive the full payout, which would be granted in 12 tranches, the company must also hit operational targets like delivering 20 million vehicles, producing one million robotaxis, and manufacturing one million humanoid robots. The proposal would also increase Musk's voting power within the company. Analysts view the move positively, with Wedbush noting the package is a "critical next step to keep Musk as CEO at least until 2030" during a key growth period.

Tesla is up 3.2% since the beginning of the year, but at $391.53 per share, it is still trading 18.4% below its 52-week high of $479.86 from December 2024. Investors who bought $1,000 worth of Tesla’s shares 5 years ago would now be looking at an investment worth $2,799.

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

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