Tesla shares hit new records as investors watch Musk’s AI strategy closely

In a remarkable breakthrough, Tesla shares climbed 3% to close at $489.88, marking the company’s first record high of the year as investors closely track its artificial intelligence (AI) ambitions. 

The surge follows comments from CEO Elon Musk confirming that Tesla has begun testing unoccupied self-driving vehicles in Austin, Texas, a major milestone toward a fully autonomous ride-hailing network.

The latest gain pushes Tesla stock up 21% year to date, completing a strong rebound after a volatile first half. 

Early optimism had lifted the stock as Musk’s political influence grew following the return of Donald Trump to the White House, with investors betting that Musk’s proximity to power could benefit Tesla despite broader policy headwinds for electric vehicles (EVs).

That said, Tesla shares tumbled sharply in February and March amid consumer backlash tied to Musk’s political involvement and concerns that his government work was distracting from Tesla’s leadership. 

Notably, at its lowest point in April, the stock had lost more than half its value from a December 2024 peak.

However, momentum returned once the tech billionaire reduced his White House engagement and refocused on Tesla’s long-term vision. 

The company’s push to position itself as an AI and robotics leader has reignited investor enthusiasm.