Tesla Inc shares are trading lower, pulling back after hitting all-time highs. The company’s stock surged to record levels with momentum rising into the close as excitement grows around its autonomous driving ambitions.
Key Points to Know
- Tesla shares are showing notable weakness after reaching record highs
- CEO Elon Musk confirmed that Tesla has begun testing its robotaxis in Austin with no one inside the vehicles
- The company first introduced the platform in June using modified Model Y cars equipped with Full Self-Driving (FSD) and a human “safety monitor” in the passenger seat
Autonomous Driving Ambitions
Musk posted on social media that the cars are now being tested with “no occupants in the car.” Wedbush analyst Dan Ives, a longtime Tesla bull, said 2026 is shaping up to be a “monster year” for the company, pointing to progress in autonomy and robotics. He believes Tesla could reach a $2 trillion market cap by 2026, with a bull-case scenario of $3 trillion.
Expansion of the Musk Ecosystem
Reports suggest that SpaceX could go public next year at a valuation of around $1.5 trillion. Ives noted that such a move would further expand opportunities for Tesla investors, while the broader AI revolution is still in the early stages of what he sees as an eight-to-10-year buildout.
Regulatory Challenges
Tesla faces regulatory challenges in California. A judge ruled that the company engaged in “deceptive marketing” around its Autopilot and Full Self-Driving systems, ordering a 30-day suspension of its license to sell and produce cars in the state. However, the California DMV later clarified that Tesla will have 60 days to address the issues before any suspension takes effect.
TSLA Price Action
Tesla shares were down 4.62% at $467.23. The stock is approaching its 52-week high of $495.28. Despite the decline, Tesla remains a major player in the electric vehicle market, with a strong outlook for the future.
Conclusion
Tesla’s retreat from record highs is a minor setback for the company, which is poised for significant growth in the coming years. With its autonomous driving ambitions and expansion of the Musk ecosystem, Tesla is well-positioned to continue its success in the electric vehicle market. However, the company must also address regulatory challenges and ensure that its marketing practices are transparent and accurate.