Tesla Stock Rebounds Amid Factory Retooling for Humanoid Robots

Tesla shares climbed 3.5% to $411.11 on Friday, partially recovering from a 4% weekly decline driven by a broader tech selloff. The rally occurred despite no company-specific catalysts, mirroring a market-wide rebound that saw the S&P 500 gain 2% and the Dow Jones Industrial Average rise 2.5%.

The electric vehicle maker has discontinued Model S and X production to retool factories for humanoid robot manufacturing—a bold pivot that coincides with its June 2025 robo-taxi launch in Austin. Expansion to nine cities is planned by mid-2026. Congressional hearings on autonomous vehicle standards this week featured testimony from Tesla and Waymo executives.

Tesla's valuation remains stratospheric at a 390 P/E ratio, dwarfing both its five-year average of 98 and the S&P 500's 28 multiple. The stock had fallen in 12 of 17 sessions prior to Friday's bounce, battered by the tech sector's struggles. Alphabet and Amazon shares tumbled after earnings disappointments, while software stocks faced AI-driven disruption fears.