Tesla Shares Rise on FSD and Robotaxi Buzz

That dynamic underscores the gap between Tesla’s current earnings power and what investors are paying for. The bull case is that Musk’s repeated teasers around future FSD updates, combined with a reported 4.1-times reduction in collisions involving the system and an upcoming EU regulatory vote, could widen the market for supervised autonomy and eventually robotaxi services. The bear case is that regulatory approvals remain uncertain, safety criticism has not gone away and Tesla’s autonomy narrative has often outrun commercial deployment.

Investors have been rewarding anything that reinforces the idea that Tesla is more than a carmaker. Autonomous-driving software, robotaxis and updates to older vehicles all support that story, especially when broader market sentiment toward the stock is weak — Adalytica’s Tesla Earnings Sentiment snapshot shows extreme fear, even after the latest one-day bounce. That makes the shares particularly vulnerable to disappointment if the next regulatory or product update falls short of Musk’s framing.

For now, the stock’s leadership in the S&P 500 looks less like a verdict on Tesla’s core auto business than a bet that autonomy can still reset the company’s earnings trajectory. The next test is whether the EU review and any new FSD release translate into approvals, adoption and revenue, or whether the rally fades back into another Musk-driven surge.