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Tesla stock has finally crossed an important milestone and reached a new record after almost a year. The move marks a strong comeback for the electric vehicle maker after months of volatility. Investors welcomed the rise as confidence slowly returned to the stock.
On Tuesday, Tesla stock closed at $489.88, its highest closing price since December 2024. During the session, shares also crossed $490 for the first time, reaching an intraday high of $491.50. This rise placed Tesla back in the spotlight among the top US technology companies. The stock helped sustain the Magnificent Seven's continued dominance.
The record was the final outcome of a long and bumpy road. Late in 2024, Tesla stock was riding high on speculation about political power and future sales. However, soon the market turned its back on the company. There was a negative public reaction, leading to protests not only in the US but also abroad.
The company's sales dwindled, particularly in China. Therefore, by the first week of April, Tesla's share price reached almost $221 per share. Weakened market confidence suggests diminished trust in the market.
Tesla shifted attention back to technology. Artificial intelligence and robotics moved to the center of the narrative. Investors responded positively to this change. Approval of a long-term compensation plan also helped. The plan tied Elon Musk to Tesla for at least ten more years. This decision reduced leadership risk and improved stability.
The latest rally gained strength after Elon Musk shared new updates on robotaxi development. Musk confirmed that Tesla has started testing fully autonomous vehicles in Austin, Texas. These vehicles currently operate under employee supervision. However, Musk said unsupervised driving has reached a near-complete stage.
Musk stated that a Tesla Robotaxi with no one inside could begin operating in Austin before the end of December. Tesla also plans to expand services to more cities across Texas, Florida, Arizona, and Nevada. These plans still face regulatory steps. Some permits remain pending. Time remains limited, but investor belief has grown.
Tesla stock now reflects more than vehicle sales. The market values future software, data, and autonomous services. Analysts see robotaxi services as a potential long-term revenue engine. Wedbush analyst Daniel Ives believes Tesla’s AI and robotics path could push the company toward a $3 trillion valuation by 2026.
Tesla’s market value now stands near $1.63 trillion. On Tuesday, the company moved past Broadcom to become the seventh-largest US firm by market capitalization. This return placed all members of the Magnificent Seven back together for the first time since May.
Tesla still faces risks. Robotaxi success depends on safety approvals and smooth expansion. EV demand also remains uneven in key markets, but still, the record close shows renewed belief. Tesla stock now trades on future technology leadership rather than past controversy.
The milestone signals a reset. Investors now watch execution closely. The next phase depends on real-world robotaxi results and the steady delivery of autonomous-driving goals.
Also Read – Tesla Expands in India with EV Network, Superchargers, and Model Y Launch
