Tesla (TSLA) Stock Is Up, What You Need To Know

Shares of electric vehicle pioneer Tesla (NASDAQ:TSLA) jumped 2.8% in the afternoon session after the stock rallied alongside the broader market, which was lifted by strong corporate results from other major tech companies.

The move came as the tech-heavy Nasdaq Composite jumped 1.2%, helping Tesla bounce back from a nearly 5% drop during the previous trading session. While one report noted no single major news event drove the rally, there were smaller positive developments. The company released a meaningful software update for its Full Self-Driving system, enabling vehicles to recover automatically after certain interruptions. Additionally, CEO Elon Musk suggested plans to open two new Tesla Diner locations, following the success of its first restaurant.

After the initial pop the shares cooled down to $450.01, up 2.3% from previous close.

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Tesla’s shares are extremely volatile and have had 48 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 1 day ago when the stock dropped 3.8% on the news that investor concerns grew as one of the United States’ largest pension funds, the California Public Employees’ Retirement System (Calpers), stated it would vote against CEO Elon Musk’s 2025 performance award. A Calpers spokesperson criticized the scale of the proposed deal, noting it was significantly larger than packages for CEOs at comparable companies and would concentrate more power in a single shareholder. Compounding the negative sentiment, Tesla dealt with its tenth recall for the Cybertruck. This latest recall of 6,197 vehicles was due to a potential issue with an off-road light bar accessory that could detach. Additionally, reports surfaced that the company was lagging in getting regulatory approval to begin offering its robotaxi service in Arizona and Nevada, two states targeted for expansion.

Tesla is up 18.6% since the beginning of the year, and at $450.01 per share, it is trading close to 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 $3,371.

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