Tesla (TSLA) is gaining momentum again, with shares rising and on pace to notch a fourth straight week of gains. The EV giant is drawing renewed interest, as many investors believe Tesla’s heavy investments in self-driving technology are nearing a breakthrough. TSLA stock gained 1.2% in pre-market hours on Friday.
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What’s Driving the Surge?
Tesla stock has soared over 40% in the past 30 days, including a nearly 15% jump this week alone as of Friday. The rally began with a strong jump after the company’s Q1 earnings announcement. Despite weaker-than-expected results, Tesla reassured investors by sticking to its roadmap for a lower-cost vehicle and the launch of its highly anticipated robotaxi service, expected to begin in Austin, Texas, this June. Overall, investors seem unfazed by the numbers and are backing Elon Musk’s big ideas and bold promises instead.
Additionally, broader market optimism due to easing trade tensions between the U.S. and China also played a role in boosting Tesla’s momentum.
Tesla’s Self-Driving Vision Wins Analyst Praise
Earlier this month, Piper Sandler’s top analyst, Alexander Potter, reiterated his Buy rating on Tesla with a $400 price target, largely driven by optimism around its Full Self-Driving (FSD) software. While Potter sees FSD as key to Tesla’s upside, he notes that Version 13 still can’t fully drive without human input, and it’s been over four months since the last major update. Piper believes the delay could signal Tesla is fine-tuning the software for a safe rollout in Austin.
Meanwhile, Goldman Sachs’ Mark Delaney believes Tesla’s FSD success hinges on improving technology quality and reducing costs. Major progress in these areas, especially versus competitors, is key to Tesla’s long-term outlook in autonomous driving. Making FSD more efficient and affordable could secure Tesla’s market lead and boost future growth.
Is Tesla a Good Stock to Buy Right Now?
On Wall Street, analysts have maintained a neutral stance on Tesla stock. According to TipRanks, TSLA stock has received a Hold consensus rating, with 16 Buys, 10 Holds, and 11 Sells assigned in the last three months. The average Tesla stock price target is $275.68, suggesting a potential downside of 20% from the current level.
