Tesla stock hits record highs
Tesla's stock narrowly missed a new all-time high on Monday, fueled by optimism around robo-taxis. However, shares hit a new record on Tuesday, almost exactly one year after the previous highs, thanks to a target-price increase from Mizuho.
Тesla stock traded as high as $491.50 on Tuesday, marking the first time shares have topped $490. The prior intraday all-time high was $488.54, reached on Dec. 18, 2024, News.Az reports, citing foreign media.
Shares closed at $489.88, also a record and the first close above $480. Shares closed at $479.86 on Dec. 17, 2024. Gains came despite a ho-hum market. The S&P 500 SPX -0.24% and Dow Jones Industrial Average DJIA -0.62% fell 0.2% and 0.6%, respectively.
The 2024 highs were fueled by President Donald Trump’s election in November. Tesla CEO Elon Musk was a strong supporter of the president, and investors came to believe his proximity to the White House would benefit Tesla.
Things didn’t unfold as expected. Musk’s political activities arguably hurt Tesla’s brand image, and Trump followed through on promises to end the federal EV purchase tax credit. The loss of the federal subsidy at the end of September weighed on EV sales in October and November.
Despite the rocky relationship, Tesla launched its AI-trained robo-taxi service in Austin, Texas, in June, which investors believe will unlock a new era of earnings growth for the company.
Robo-taxis have fueled the recent rally. Monday’s jump came after Musk tweeted, on Sunday, that Tesla was testing robo-taxis without safety monitors in the car. That’s another step on the path to expanding Tesla’s service across the U.S.
Tesla’s robo-taxi service launched with safety monitors sitting in the front passenger seat. In October, Musk said he hoped to remove the monitors by year’s end.
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