Tesla shares rise 11.79% amid market strength
Tesla Inc shares surged by 11.79% during regular trading, reaching a 5-day high. This increase comes amid broader market strength, with the Nasdaq-100 up 0.82% and the S&P 500 up 0.60%.
The positive movement aligns with the overall market conditions, reflecting a sector rotation as investors show renewed interest in electric vehicle stocks despite recent challenges faced by Tesla, including a 16% decline in deliveries reported last week. This shift in investor sentiment may indicate a recovery phase for Tesla as it navigates competitive pressures in the EV market.
The implications of this price movement suggest that investors are optimistic about Tesla's future prospects, particularly as the company continues to innovate and expand its product offerings in a rapidly evolving industry.
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- FSD Transfer Program Overview: Tesla has launched a limited-time FSD transfer program allowing customers to order a new vehicle and transfer the Full Self-Driving feature from their existing vehicle by March 31, 2026, aimed at enhancing customer experience and boosting new vehicle sales.
- Eligibility Requirements: Customers must be the legal owners of the current FSD vehicle, with both vehicles under the same Tesla account, ensuring a smooth transfer process that enhances customer loyalty to the Tesla brand.
- Transfer Conditions: Vehicles eligible for transfer must not be under lease, used for commercial purposes, or have unresolved financial issues, ensuring compliance and safety during the transfer process while minimizing potential legal risks.
- Policy Update Context: This program follows Tesla's announcement that the free FSD transfer service will end in March, demonstrating the company's flexibility in adjusting policies to meet market demands and customer feedback.
- Elevated Safety Standards: Waymo's VP Srikanth Thirumalai stated in an interview that the standards for autonomous driving should exceed human capabilities, emphasizing that safety is paramount, with future efforts focused on reducing sensor costs and improving software quality to ensure product safety.
- Sensor System Optimization: Currently, Waymo employs a comprehensive system with 29 cameras, 5 lidars, and 6 radars to enhance AI perception, planning to reduce the number of sensors in future robotaxi models while iterating and innovating to lower costs and improve software performance.
- Tesla's AI Perspective: Tesla's VP of AI, Ashok Elluswamy, emphasized at the ScaledML Conference that autonomous driving should rely on cameras rather than sensors, arguing that the challenge lies in AI capabilities rather than sensor technology, highlighting the importance of information extraction.
- Ongoing Industry Debate: Despite differing views on autonomous driving technology, both Waymo and Tesla acknowledge the challenges in achieving fully safe autonomous driving, indicating that the debate within the industry continues to evolve.
- Valuation Challenge: Musk acknowledged that Tesla's current market cap of $1.5 trillion requires a 65-fold increase to reach the $100 trillion target, which necessitates an enormous amount of work and a bit of luck.
- Future Market Potential: Robotaxis are projected to be a major contributor to Tesla's valuation, with Ark Invest estimating a $10 trillion market by 2030, while Morgan Stanley and Citi estimate the humanoid robot market to be between $5 trillion and $7 trillion.
- Production Capacity Outlook: Musk anticipates producing 100,000 Optimus humanoid robots monthly within five years, potentially generating $30 billion in annual revenue, which would significantly enhance Tesla's overall revenue structure.
- Energy Storage Growth: Tesla deployed 14.2 GWh of energy storage last quarter and a total of 46.7 GWh over the past year, demonstrating strong growth potential in the renewable energy sector, further enhancing the company's market competitiveness.
- Musk Ordered to Testify: A federal judge has ruled that Elon Musk must testify regarding his role in dismantling USAID, rejecting his legal team's attempt to avoid questioning, which could impact Musk's reputation and future business endeavors.
- Alphabet Beats Earnings Estimates: Alphabet reported fourth-quarter revenue of $113.83 billion, surpassing the Street consensus estimate of $111.31 billion, with earnings per share of $2.82 exceeding expectations of $2.63, indicating strong performance in advertising and cloud services that may drive stock price increases.
- Amazon Delivery Milestone: Amazon announced it delivered over 13 billion items globally in 2025, with more than 8 billion items reaching U.S. Prime members the same or next day, a speed enhancement that will further strengthen its competitive position in the e-commerce market.
- Tesla's New Model Launch: Tesla unveiled a new All-Wheel Drive variant of the Model Y in the U.S. and Puerto Rico following Elon Musk's announcement of discontinuing the Model S and X, which could attract more consumers and enhance market share.
- Intense Recruitment Competition: Elon Musk disclosed that Apple aggressively pursued Tesla engineers with high-paying recruitment calls during its abandoned electric vehicle project, highlighting the fierce talent competition that could impact Tesla's technological advancements.
- Sales Performance Breakthrough: Apple reported record iPhone sales in its latest earnings report, boosting its market share to 69%, despite weak sales in both low-end and premium Android devices, demonstrating Apple's strong brand loyalty and market appeal in a competitive landscape.
- Leadership Change Speculation: Rumors surrounding CEO Tim Cook potentially stepping down in 2026 are gaining traction, with prediction markets indicating a 33% chance of his departure, which could lead to significant shifts in the company's strategic direction and affect investor confidence.
- Holiday Season Support: Apple plans to support Qualcomm during the holiday season, potentially enhancing product sales and further solidifying its market leadership, especially as competitors face challenges in the current environment.
- Award Recognition: Hyundai's Atlas robot won the Best Robot award at CES 2026, with the judging panel praising its naturalistic walking and sleek design, marking a significant breakthrough in robotics that is expected to enhance the company's market competitiveness.
- Factory Implementation Plans: Hyundai intends to deploy Atlas robots in its Georgia car factory by 2028, starting with simple tasks like parts sequencing and planning to expand to more complex activities by 2030, which will improve production efficiency and reduce labor costs.
- AI Technology Advancement: Toyota's collaboration with Boston Dynamics utilizes large behavior model (LBM) AI to help Atlas robots learn, enhancing their adaptability in factory settings, which is expected to accelerate skill acquisition and improve production flexibility.
- Tesla's Robotics Strategy: Tesla announced the conversion of its California factory to produce Optimus robots with a goal of 1 million units per year, and although still in the R&D phase, Musk predicts that 80% of the company's value will eventually come from this business, demonstrating strong confidence in robotics technology.











