Tesla Stock Volatility Reflects AI Sector Turbulence Amid Record Highs
Tesla shares rebounded 1.4% to $473.65 Thursday after a 4.6% drop during Wednesday's AI sector selloff. The stock had reached a record $495.28 Tuesday before the retreat, its first all-time high since December 2024.
The selloff coincided with Mythic's $125 million funding round for energy-efficient AI chips—a development that ironically aligns with Tesla's interests. As Nvidia fell 3.8% and GE Vernova plunged 10.5%, Tesla's autonomous driving ambitions provided ballast. The company has begun testing unoccupied FSD vehicles in Austin, accelerating its robotaxi roadmap.
Despite EV demand concerns, Tesla's 16-21% YTD gain reflects investor conviction in its AI and automation stack. The market appears to be pricing Tesla as much for its neural networks as for its vehicles.