Tesla’s stock surged 69% in a month, driven by optimism for its Robotaxi and Full Self-Driving (FSD) technology. The stock added $55 billion (€53 billion) in market value, reaching a record $1.35 trillion (€1.29 trillion) valuation. Tesla’s P/E ratio climbed to 103, far surpassing Nvidia’s 54. Year-to-date, Tesla’s stock rose 57%, reversing earlier losses.
Musk’s Cybercab and Robovan emphasize Tesla’s autonomous driving ambitions. Trump’s incoming administration could facilitate mass adoption of self-driving cars. Bloomberg reported plans for federal regulations to support autonomous vehicle growth.
Robotaxi Potential Drives Optimism
Musk projected that Tesla’s Cybercab business could increase the company’s market cap to $5 trillion (€4.8 trillion). ARK Invest estimated Tesla’s robotaxi business will dominate its earnings by 2029, with shares potentially reaching $2,600 (€2,484).
Trump’s plan to remove EV subsidies may benefit Tesla. The company remains profitable without subsidies, unlike smaller competitors reliant on government support.
Tesla’s Core Operations See Rebound
Tesla’s Q3 earnings were pivotal for its stock performance. Shares rose 12% on 22 October after strong revenue growth. Automotive revenue increased 2% year-on-year, while total revenue climbed 8%, marking the strongest growth in a year.
Tesla delivered 462,890 vehicles in Q3, up 6.4% year-on-year. Musk expects deliveries to grow by 20%-30% in 2025, demonstrating Tesla’s strength in the electric vehicle market.