Tesla Stock Surges 24% Despite Weak Q1—Driverless Push Fuels TSLA Rally

Tesla shares posted their strongest weekly gain in over a year, climbing 24% despite underwhelming first-quarter results. The electric vehicle Maker reported adjusted earnings of $0.27 per share, missing the $0.42 consensus estimate, while revenue also fell short of expectations.

Investors focused instead on Tesla’s maintained margins, commitment to long-term strategy, and upcoming vehicle launches. Sentiment further improved after federal regulators unveiled a new autonomous vehicle framework that positions Tesla favorably against rivals.

The rally demonstrates how market participants are weighing future growth potential against near-term financial performance. Tesla’s aggressive push into autonomous driving technology appears to be reshaping valuation metrics across the automotive sector.