Tesla Stock Rises on Robotaxi Expansion Plans Amid Executive Departure

Tesla shares gained 1.5% to close at $417.32, extending Friday's 3.5% rally as the stock finds support NEAR the $390 level. The rebound follows an 8% drop earlier in the week, with shares still down 5% since Q4 earnings.

Elon Musk announced Tesla's robotaxi fleet has surpassed 500 vehicles in Austin and San Francisco, with paid rides underway. The CEO projects monthly doubling of the fleet, potentially covering 25-50% of U.S. markets by year-end—pending regulatory approvals that remain uncertain.

The bullish outlook contrasts with analyst skepticism. Only 40% rate Tesla a Buy versus 55% for S&P 500 peers, while the stock trades at over 200x forward earnings. Tesla plans to halt Model S/X production, redirecting $20B capital expenditure toward Optimus robot manufacturing by 2026.

Executive turnover continues as VP Raj Jegannathan departs after 13 years, leaving critical AI infrastructure and IT security roles vacant during the automation push.