Key Points
- Tesla’s EV sales keep sliding, but that’s not what investors are watching.
- The company’s robotaxis are moving to the next testing phase, according to CEO Elon Musk.
- Tesla (NASDAQ: TSLA) shares rose as much as 5% to start the trading week, briefly marking the highest level in a year. As of 12:30 p.m. ET, the stock remained up by 4%, just shy of the all-time high.
News that Tesla’s U.S. sales in November were the lowest since January 2022 hasn’t deterred a recent rally, with shares up 18% in the last month.
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Robotaxi progress
Tesla’s domestic sales fell 23% to 39,800 vehicles in November, according to Cox Automotive. That drop wasn’t unique to Tesla, though. Overall, U.S. electric vehicle (EV) sales plunged 41% as the sector navigates the Trump administration’s cessation of $7,500 federal tax credits at the end of September.
Tesla’s EV sales aren’t what investors are most concerned about, though. The stock trades at a level that can’t be justified by EV sales alone. The prospects for Tesla’s autonomous driving technology are more important for many investors.
This weekend, CEO Elon Musk gave them a reason for optimism that looks to be driving the stock higher today. Musk has invested heavily in developing autonomous vehicles that can act as a driverless robotaxi fleet. On Sunday, he posted on social media that “testing is underway with no occupants in the car.”
Testing without human safety monitors or occupants in the vehicle signals notable progress in Tesla’s driverless taxi development. That prompted investors to push Tesla stock to its all-time high during trading this morning.