Tesla stock climbed nearly 4% on Monday, pushing past $440 in early trading and hitting a new 2025 closing high.
The rally broke the previous year-to-date record of $428.22 set on January 15, and capped off a hot run that’s seen the company post gains in nine out of the last ten sessions, according to data from Yahoo Finance.
Investors are leaning into Tesla’s long-term bets on self-driving tech, new product lines, and a CEO who’s once again making waves with billion-dollar moves.
The stock has now jumped over 30% in the last month, thanks in part to Elon Musk’s $1 billion share purchase last week. That massive buy wasn’t the only catalyst.
The market also reacted to his new proposed pay plan, and the company’s public push to expand its Robotaxi program beyond the original test city of Austin. Tesla has announced intentions to bring the Robotaxi trial to Nevada, Florida, and California, though not everything is going according to plan.
Analyst bumps Tesla price target after visiting China
One of the big sparks behind the current Tesla momentum is a price target increase from Piper Sandler analyst Alexander Potter, who raised his outlook from $400 to $500. Potter made the call after returning from China, where he met with executives at Xiaomi, Li Auto, and Leapmotor.
While those companies might be ahead on how fast they can build cars, Potter said they’re all watching Tesla closely when it comes to AI-powered driving systems and how to scale them.
“When it comes to ‘real world’ AI, these companies look to Tesla for guidance — not the other way around,” said Potter. “In the words of one company, ‘without Tesla going from 0 to 1, we can’t go from 1 to 100.’” He also shared his experience testing Tesla’s newest Full Self-Driving (FSD) software and called it the best version yet, forecasting record sales for Q3.
But the company’s Robotaxi dream isn’t as far along as Elon claimed. While he said Tesla was “getting the regulatory permission” needed to operate in the San Francisco Bay Area, Reuters reported the truth looks different.
The company hasn’t applied for the required permits, which often take years to process. Instead of autonomous vehicles, Tesla plans to offer pre-scheduled rides using human drivers, under a limousine-style permit. State officials confirmed this setup doesn’t allow for any on-demand ride-hailing.
Elon’s recent actions, starting from 2024, have triggered a consumer backlash, especially among buyers who feel Tesla’s brand is veering too far into politics.
Still, the company is trying to change the subject. New attention is being placed on Tesla’s MegaBlocks; large, prebuilt energy storage systems meant for businesses trying to lower energy bills or tap into renewable electricity.
Tesla has already started shipping them, hoping to generate interest outside the EV industry. But the company is still bleeding market share.
Despite the rally, Tesla remains the second-worst performing megacap in tech for the year, only slightly ahead of Apple, which is down about 5% in 2025. The company continues to suffer from slowing sales, an outdated EV lineup, and fierce price competition from Chinese rivals like BYD.
To distract from those problems, Elon is now talking up Tesla’s humanoid robot project, known as Optimus. He says the robot will one day be able to work in factories or even babysit children.
That’s what he claims. But there’s no prototype ready for market, no launch timeline, and no product that works without a human on standby.
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