Tesla Shatters Records: Stock Soars 3.1% to Close at $489.88
Tesla just rewrote its own rulebook. The electric vehicle juggernaut isn't just cruising—it's accelerating into uncharted territory, leaving analysts scrambling to update their models.
The Numbers Don't Lie
A 3.1% surge in a single session. A closing price kissing $489.88. This isn't a blip; it's a statement. The market is voting with its dollars, signaling a belief in a future that's already arrived in the showroom.
Beyond the Hype Cycle
Forget the day traders and the noise. This move speaks to a deeper conviction. It's about scaling production, dominating a sector, and executing a vision while legacy automakers are stuck in committee meetings debating their EV roadmap. One can't help but wonder if the traditional finance playbook—all discounted cash flows and cautious guidance—is becoming obsolete in the face of such momentum. Perhaps the old guard is too busy looking in the rearview mirror to see what's coming up fast in the passing lane.
The takeaway is simple: when a company consistently outperforms expectations, the charts have no choice but to follow. The record close isn't a finish line; it's just the latest marker on a much longer road.
Tesla faces political heat and sales trouble
Elon said the company still has a lot to do before those automated systems reach the wider public.
The vehicles being tested are not available to normal buyers, and many questions about safety remain open. The company’s year has also been shaped by politics.
Elon joined President Donald Trump’s WHITE House at the start of the year to run the Department of Government Efficiency (DOGE). His task was to push for large cuts to federal agencies and reduce regulations. That move looked like a win for Tesla at first, but it did not stay that way.
Elon’s loud involvement in global far-right politics and his public attacks online triggered a consumer backlash.
That backlash cut into Tesla’s reputation and its sales numbers. The company reported a 13% drop in deliveries and a 20% fall in automotive revenue in the first quarter.
The stock rallied in the second quarter, but revenue kept sliding, with auto sales down 16%. The second half of the year finally brought some relief.
In October, Tesla said its third-quarter revenue ROSE 12% as U.S. buyers rushed to buy EVs and use a federal tax credit before it expired in late September. The stock gained 40% that quarter, giving shareholders something to smile about again.
Tesla works through revenue loss and tougher rivals
The environment is still tough, though, as the loss of the tax credit is hitting demand because Elon’s political presence continues to bother parts of the consumer base. Competition is growing fast, especially from BYD and Xiaomi in China and Volkswagen in Europe.
Tesla tried to respond in October by releasing cheaper versions of the Model Y and Model 3, but those trims have not boosted sales in the U.S. or Europe.
In the U.S., they seem to be eating into demand for Tesla’s higher-priced cars. Data from Cox Automotive shows Tesla’s November sales sank to a four-year low.
Even with all the pressure, analysts at Mizuho raised their Tesla price target from $475 to $530 this week, though they did keep their buy call and wrote that recent gains in Tesla’s FSD (Supervised) software “could support an accelerated expansion” of its “robotaxi fleet in Austin, San Francisco, and potentially earlier elimination of the chaperone.”
Tesla already runs a Robotaxi-branded ride-hailing service in Texas and California, but drivers or human supervisors still sit inside every vehicle.
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