Tesla stock climbed 7% to $370.44 Thursday, reaching its highest level since February. The surge came after Nevada’s Department of Motor Vehicles approved the company for autonomous vehicle testing on public roads.
The electric vehicle maker has been testing driverless rides in Austin, Texas. Nevada’s approval opens the door for expanded robotaxi operations in another key state.
NEWS: Tesla has officially received approval from the Nevada DMV to start testing autonomous vehicles (robotaxis) on public roads.
Today, I confirmed directly with the Nevada DMV that @Tesla's application to obtain a Testing Registry certification was approved by the DMV Office… pic.twitter.com/hx5JhHBFiD
— Sawyer Merritt (@SawyerMerritt) September 11, 2025
Broader market optimism also helped fuel the rally. Investors bet on Federal Reserve rate cuts following recent inflation data.
Auto financing costs typically drop when the Fed cuts rates. This could boost vehicle demand and help Tesla’s core business.
The stock broke through key resistance at $350 that had capped gains for months. Trading volume surged as institutional investors returned to the name.
Tesla’s 50-day moving average crossed above the 200-day average. This created a golden cross pattern that technical analysts view as bullish.
Nevada officials confirmed the testing permits but stressed Tesla needs more regulatory clearance for commercial service. CEO Elon Musk has promised ride-hailing could reach half the U.S. population by year-end.
The autonomous driving push represents a key growth catalyst for Tesla. Investors increasingly value the company as an AI and technology firm rather than just an automaker.
Tesla’s forward price-to-earnings ratio sits near 70 for 2025 estimates. This premium valuation exceeds the S&P 500 average and other tech stocks.
Meanwhile, Tesla’s board asked shareholders to approve a new incentive package for Musk. The plan could grant him 423 million additional shares, boosting his stake to roughly 25%.
To unlock the award, Musk would need to steer Tesla through lofty milestones. These include reaching market caps as high as $8.5 trillion and delivering one million robotaxis.
The package also calls for one million Optimus robot deliveries. The idea is to secure Musk’s focus through 2030 on autonomy and AI.
Tesla’s six-seater Model Y L completely sold out in China with over 120,000 orders. Deliveries have been pushed back to November due to overwhelming demand.
The company reduced Model 3 Long Range pricing by 3.7% to counter local rivals like Xpeng. Despite price cuts, Tesla’s insured registrations in China rose 41% last quarter.
This performance comes as Tesla’s U.S. EV market share fell to a multi-year low of 38%. Chinese competitors and legacy automakers have captured increasing market share domestically.
Wedbush analyst Daniel Ives rates Tesla shares an Outperform with a street-high price target of $500. This suggests potential gains of 26% from current levels.
Ives believes Tesla is uniquely positioned to blend automotive scale with next-generation technologies. The timing of Musk’s compensation package reflects the accelerating AI revolution.
However, Wall Street remains divided on Tesla stock. Among 33 recent analyst reviews, 13 are Buys, 13 are Holds, and 7 are Sells.
The consensus rating is Hold with an average price target of $311.11. This points to roughly 21% downside from current levels.
Wells Fargo analyst Colin Langan warned Tesla’s August deliveries across major markets dropped 9% year-over-year. The firm maintains an ‘Underweight’ rating with a $120 price target.
Short interest remains elevated at roughly 3% of tradable shares. About 80 million Tesla shares are currently sold short.
The post Tesla (TSLA) Stock: Nevada Robotaxi Approval Drives Shares to 7 Month Peak appeared first on CoinCentral.
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