Shares saw their first record close since December 2024, helping support the continued reign of the “Magnificent Seven.”

TSLA shares dropped 73.6% from a peak of $409.97 on November 4, 2021, to $108.10 on January 3, 2023, in contrast to a peak-to-trough drop of 25.4% for the S&P 500. Sine then, the stock surged to a high of $479.86 on December 17, 2024, and is currently trading at $475.31

Morgan Stanley cut Tesla to equal weight yet tweaked its price target to $425, saying valuation is stretched while 2026 volumes look choppy. Bank of America bumped its Tesla target to $471 from $341 while keeping a neutral rating, saying Robotaxi and Optimus are driving the bulk of its SOTP.

The 13F filings for Q3 reveal a split: one side ran for the exits on Tesla and the other poured hundreds of millions into the stock.

Tesla stock closed at a new record high on Tuesday as investors rallied around CEO Elon Musk’s robotaxi vision, boosting shares despite slower electric vehicle sales.

Tesla shares closed at a record-high $489.88 on Tuesday, days after CEO Elon Musk announced the company had been testing driverless vehicles in Texas.

On Dec. 15, 2025, investors weighed fresh robotaxi trials and AI ambitions against mounting questions over Tesla’s rich valuation.

Tesla (NASDAQ:TSLA) could expand its robotaxi footprint sharply over the next decade, with Morgan Stanley projecting up to one million vehicles operating across multiple cities by 2035. Morgan Stanley maintains an Equal-weight rating on Tesla with a price target of $425.