Tesla shares have just surpassed the milestone of a full year of recovery thanks to CEO Elon Musk buying 2.6 million shares worth about $1 billion. This move is considered by investors as a strong signal of confidence in the future of the electric car company, especially in the field of autonomous technology and robotics.
Tesla announced on Friday that CEO Elon Musk had purchased 2.6 million shares for the first time since 2020, worth nearly $ 1 billion . The news sent Tesla (TSLA) shares up more than 3% on Monday, wiping out losses for the year.
Musk’s move was seen by investors as a strong “vote of confidence” in Tesla, especially as the company focuses on developing advanced technologies such as robotaxi and humanoid robots (Optimus). The stock purchase also comes about a week after Tesla proposed a compensation package worth nearly $1 trillion to Musk over the next 10 years, along with ambitious goals for the robotics and robotaxi business.
How did Tesla recover after the ups and downs?
Tesla shares have fully recovered from their March lows after Musk’s public spat with President Trump, which has since subsided. Musk’s retreat from politics and focus on robotaxis has helped fuel the stock’s growth. Since Musk officially left Washington DC and put his plans for a third party on hold, Tesla shares have risen more than 70%.
Meanwhile, the EV market faces many challenges: sales in Europe are falling due to political influences, BYD (China) is competing strongly, and the expiration of tax credits in the US is putting pressure on electric vehicle sales.
Robotaxi and Optimus – Tesla’s Big Step Forward
Tesla launched its first robotaxi in Austin, Texas, in June and plans to test it in Nevada soon. Musk is also pushing his Optimus humanoid robot line, which he says will be a major growth driver.
Musk has previously stressed that Tesla will make about 80% of its money from robots that help people perform everyday tasks like cooking, walking the dog, or babysitting. “Optimus will be the greatest product in the history of mankind,” Musk said on the All-In podcast.
Wall Street currently has 27 buy, 19 hold, and 5 sell ratings on Tesla stock. Morgan Stanley analyst Adam Jonas forecasts a $410 price target, based on the potential to replace global labor with humanoid robots.
Tesla shares are up about 3% year-to-date, marking a positive comeback after a volatile period.
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