TLDR
- Tesla stock rose 1.4% to $434.51 in early Thursday trading, marking a potential fifth consecutive day of gains
- The stock has climbed 8% over four days but remains below its Jan. 28 close following Q4 earnings
- CEO Elon Musk announced xAI reorganization to improve execution speed after SpaceX’s acquisition ahead of a midyear IPO
- Tesla plans to expand its robo-taxi service to nine cities in the first half of 2026 and produce the third-generation Optimus robot this year
- Benchmark reiterated its Buy rating with a $475 price target, calling 2026 an “investment year” with accelerated spending on autonomy, AI, robotics, and energy
Tesla stock climbed 1.4% to $434.51 in early Thursday trading. The move put shares on track for a fifth consecutive day of gains.
The electric-vehicle maker has added roughly 8% during its four-day winning streak. However, the stock still trades about $3 below its Jan. 28 close, which came before the company reported stronger-than-expected fourth-quarter results.
The recent rally comes as investors digest news from CEO Elon Musk’s broader business empire. SpaceX acquired Musk’s AI company xAI ahead of a planned midyear initial public offering.
Musk addressed the xAI reorganization on Wednesday. He said the move would “improve speed of execution” as the company scales rapidly.
The restructuring follows similar moves at Tesla. Musk cut roughly 10% of Tesla’s workforce in 2024 to address organizational inefficiencies that had built up during years of rapid growth.
Robo-Taxi Expansion Takes Center Stage
Investors are now watching for catalysts that could push Tesla stock higher. The robo-taxi service and humanoid robots top the list of potential drivers.
Tesla plans to expand its autonomous taxi service to nine cities during the first half of 2026. The company also expects to manufacture the third generation of its Optimus humanoid robot this year.
The dual focus on robotics and autonomous driving represents a shift away from traditional vehicle sales. It’s a bet that Tesla can monetize its AI and software capabilities at scale.
Analyst Outlook Remains Positive
Benchmark maintained its Buy rating on Tesla with a $475 price target. The firm called 2026 an “investment year” for the company.
Tesla is prioritizing platform development over short-term earnings. The strategy includes accelerated spending on autonomy, AI, robotics, and energy infrastructure.
Benchmark pointed to Tesla’s fourth-quarter performance as evidence the strategy is working. The company maintained strong margins, energy growth, and cash generation despite the transition.
The firm values Tesla as a “physical AI, software, and fleet-based platform” rather than a traditional automaker. Analyst price targets range from $125 to $600, reflecting deep divisions on Wall Street.
Tesla trades at a price-to-earnings ratio of 361. The company reported $3.79 billion in net income on revenue of $94.83 billion over the last twelve months.
Tesla stock has climbed 30% over the past year. The company maintains more cash than debt and holds a current ratio of 2.16.
Tesla recently announced plans to add 100 gigawatts of solar manufacturing capacity. The expansion aligns with Musk’s vision for solar-powered data centers. The company also launched an AI training center in China to enhance local driving applications.
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