Tesla Stock’s Meteoric Rise: Here’s Why It Keeps Defying Gravity
Tesla shares just won't quit—another day, another surge that's leaving traditional auto giants in the dust.
The Elon Momentum Effect
Market sentiment continues riding the Musk wave as Tesla's vertical integration strategy keeps delivering margins that make legacy manufacturers weep into their quarterly reports.
Short Squeeze Symphony
Bearish positions get steamrolled yet again as retail traders pile into calls, creating that beautiful feedback loop Wall Street analysts love to call 'irrational exuberance' right before they quietly adjust their price targets upward.
The Energy Angle Ignites
Beyond the cars, Tesla's energy storage business starts looking less like a side project and more like the next trillion-dollar opportunity—because apparently making the world's most desirable EVs wasn't enough.
While fundamentals matter eventually, today belongs to the bulls who treat stock charts like crypto charts—because in this market, why let pesky things like valuations get in the way of a good moonshot?
Image source: Tesla.
Betting on Tesla's future
It's no surprise that Musk believes Tesla has a bright future. The outspoken CEO hasn't been shy about telling investors to overlook Tesla's slumping electric vehicle (EV) sales when thinking about investing in Tesla stock. He recently said he believes that 80% of Tesla's value will eventually come from its Optimus humanoid robot.
He's backing up his confidence in the company with a huge stock purchase. Musk just made a large Tesla stock purchase for the first time in over five years. He added 2.57 million shares on Friday for about $1 billion, according to a Securities and Exchange Commission filing. The FORM 4 filing shows Musk made several purchases last Friday at various prices ranging from about $372 to $396 per share.
Those stock purchases came after Tesla stock soared by 25% just over the last month. Investor excitement is building as the EV leader prepares to launch fully self-driving technology with a robotaxi fleet.
An Optimus robot launch may be further in the future, but Musk clearly thinks now is the time to buy shares. Musk's Optimism shouldn't really change what investors think. Those who own Tesla shares should already believe in the potential for Optimus and Tesla's robotaxi plan. Musk's confidence seems to be changing some investor minds, though, as buyers are following him into the stock today.
