Tesla Stock Is on Fire Again. 3 Reasons for Gains
Tesla stock is suddenly on fire, and it's not clear why.Shares of the electric-vehicle maker were up 7.4% in midday trading at $391.20, while the S&P 500 was up 0.4%. Shares are on pace for their best day since June 2025.The gain comes as TD Cowen analyst Itay Michaeli lowered his price target to $490 from $519. He kept his Buy rating on the shares. A target cut shouldn't drive big gains.CEO Elon Musk appears to be one of the reasons for the stock's jump. Tesla has a large and devoted retail shareholder base that is active on his social-media platform, so investors can always head to X to see what's going on. Early Wednesday, Musk tweeted a picture of a Tesla-designed microchip, dubbed AI5.The chip is for "Optimus and our supercomputer clusters," said Musk in a subsequent tweet. "AI4 [hardware] is enough to achieve much better than human safety for FSD.". FSD is short for Full Self-Driving, Tesla's driver assistance product that forms the basis of its robo-taxi technology.
