Tesla TSLA stock record high: Tesla stock soars to record high today: What’s driving TSLA rally?

Tesla shares are at record high: Tesla shares staged an impressive comeback, turning what started as a challenging year for investors into a cause for celebration. According to the report, Tesla shares, which experienced a sharp decline of 36% in the first quarter, their worst period since 2022, started to rise and closed at an all-time high of $ 489.88 on Tuesday. It’s up 3.1% for the day and is now up 21% for the year. As reported by CNBC, the previous intraday high of $488.54 was reached nearly a year ago, and the last record closing price was $479.86.

TSLA Shares Soar to All-Time High After Elon Musk Says Tesla Is Testing Fully Driverless Tesla Vehicles in Austin

The rally followed news that CEO Elon Musk said the EV giant was testing fully driverless Tesla vehicles in Austin, Texas, months after launching a pilot program with safety drivers. The autonomous driving systems being tested are not yet widely available, and safety questions remain. Still, investors are optimistic that the company can finally deliver its long-promised robotaxi service with a software update.

Tesla’s Market Value Reached $1.63 Trillion

According to a CNBC report, Tesla’s market cap has risen 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. Elon Musk’s personal net worth is currently 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 increase, Tesla’s year has been a bumpy one. Musk’s political activities, including his work with US President Donald Trump’s Department of Government Efficiency and his support of far-right figures, have sparked a consumer backlash that has affected Tesla’s brand and sales.

Tesla reported a 13% drop in deliveries and a 20% drop in automotive revenue in the first quarter. The second quarter saw a partial recovery in stock prices, but sales continued to decline and auto revenue fell 16%, according to a CNBC report.
The second half of 2025 was stronger. In October, Tesla reported a 12% increase in third-quarter revenue as buyers rushed to take advantage of the federal EV tax credit before it expired. The stock is up 40% during this period.
Business challenges continue. The loss of the federal tax credit, the ongoing backlash against Musk and increased competition from low-cost electric vehicles from 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 significantly boost U.S. and European sales; Cox Automotive reported that U.S. sales fell to a four-year low in November, according to a CNBC report.
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Tesla Price Target: Analysts Remain Bullish on Tesla Stock

Still, analysts maintain bullish expectations. Mizuho recently raised his Tesla price target to $530 from $475 and maintained a buy rating, citing developments in Tesla’s Fully Self-Driving (FSD) technology that could accelerate the rollout of its robotaxi fleet in Austin, San Francisco, and potentially grow without human safety inspectors sooner than expected.

Currently, Tesla operates its Robotaxi-branded ride-hailing service with human drivers or safety inspectors in Texas and California, but the company’s recent tests point to a fully autonomous fleet in the future.

FAQ

How much did Tesla shares gain in 2025?
The stock is up 21% so far this year.

What recent developments helped Tesla shares rise?
Elon Musk announced that fully driverless Tesla vehicles are being tested in Austin, Texas.