Tesla (TSLA) Soars 6% as Rate Cut Hopes and Massive FSD Upgrade Fuel Rally
Wall Street's favorite rollercoaster stock just got another adrenaline injection. Tesla shares ripped higher by 6% as twin catalysts—Federal Reserve rate cut speculation and a groundbreaking Full Self-Driving update—sent bulls into a frenzy.
The Rate Cut Effect
Cheaper money means risk-on assets get loved again. Tesla, with its growth-stock DNA, feasts on lower borrowing costs and investor appetite for momentum plays. The market's betting the Fed will flip from hawk to dove—and Tesla's riding that wave hard.
FSD: Not Just Hype Anymore?
Elon Musk’s autonomous driving suite just leveled up. This isn’t another incremental tweak—it’s a foundational overhaul that actually makes city streets navigable without white-knuckling the steering wheel. Early testers report fewer 'phantom brakes' and smoother lane changes. Finally.
Of course, Tesla’s volatility remains a feature, not a bug—perfect for traders who treat the stock like a crypto token with earnings reports. Because nothing says 'stable investment' like a company that moves 6% on rumors and software updates.
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The outlook for easier policy lifted major indexes as investors returned to growth stocks. The Dow Jones Industrial Average (DJIA) closed up 846 points at a record level. At the same time, the S&P 500 (SPY) climbed 1.5% while the Nasdaq (NDX) rose 1.8%. Tesla led the group with its stock closing at $340.01, near the top of the day’s range. The session saw $31.2 billion in trading volume, which was the highest in the market.
Tesla Updates Coincide with Market Optimism on Rates
Alongside the macro news, Tesla has shared new updates that added momentum. CEO Elon Musk posted that the company is training a new Full Self-Driving (FSD) model with ten times more parameters than the current version. He noted that a software release is targeted for the end of September. Moreover, Tesla is expanding its Robotaxi service in Austin, Texas, and is seeking approval to operate in Arizona.
Overall, the rally shows how growth companies benefit when borrowing costs look set to fall. Lower rates tend to increase the appeal of firms with large future cash flows, and Tesla is at the center of that trade.
What Is TSLA’s Stock Price Target?
On the Street, Tesla continues to divide opinions with a Hold consensus rating. The average TSLA stock price target stands at $307.90, implying a 9.44% downside from the current price.
