Tesla’s shares soared as enthusiasm for its Robotaxi and Full Self-Driving (FSD) technology grew. The stock rose 69% in a month, adding $55 billion (€53 billion) to its valuation, now at $1.35 trillion (€1.29 trillion). Tesla’s P/E ratio reached 103, the highest among major stocks, while Nvidia’s stood at 54. Year-to-date, Tesla’s stock has climbed 57%, reversing prior losses.
The Cybercab and Robovan highlight Tesla’s innovation in autonomous driving. Trump’s administration could ease regulations, aiding Tesla’s Robotaxi business. Bloomberg reported plans for federal self-driving car laws to facilitate wider adoption.
Trump Administration Brings Opportunity
At the “We, Robot” event, Musk forecasted that Tesla’s Cybercab business could raise its market cap to $5 trillion (€4.8 trillion). ARK Invest predicted that robotaxis will account for 90% of Tesla’s value and earnings by 2029, with shares potentially hitting $2,600 (€2,484).
The Trump administration’s potential removal of EV subsidies could paradoxically benefit Tesla. The company remains profitable without subsidies, unlike smaller competitors reliant on government support, enhancing Tesla’s position.
Core Business Drives Tesla’s Growth
Tesla’s Q3 earnings contributed significantly to its stock rally. Shares surged 12% on 22 October following strong financial results. Automotive revenue grew 2% year-on-year, while total revenue increased 8%, the strongest in a year.
Tesla delivered 462,890 vehicles in Q3, marking a 6.4% year-on-year increase and the highest Q3 figure in its history. Musk anticipates deliveries growing by 20%-30% in 2025, highlighting Tesla’s continued leadership in EV markets.