Tesla hit a level today that looked insane just months ago, crossing a $1.5 trillion market cap after adding roughly $900 billion since April 2025.
TSLA has surged by about 4% in early trade and sat just under the old peak of $488.54, putting the company on track for a record close. The move came as videos of new testing rounds went viral and analysts raised targets again.
Robotaxi progress drives the stock higher
The jump followed new excitement around Tesla’s Robotaxi program. A user on X.com posted a clip on Sunday showing a Tesla Robotaxi driving around Austin without a safety driver. That city is one of the core testing spots for the service.
Ashok Elluswamy, who runs Tesla’s AI and autonomous projects, reacted by writing, “And so it begins!” The line spread quickly, and many traders treated it like a signal that the next stage is starting.
Elon Musk later backed up the video, writing, “Testing is underway with no occupants in the car.”That message lined up with what he said earlier this month when he claimed Tesla was only weeks away from unsupervised robotaxis on public roads.
Elon also said last month that the Robotaxi fleet would double in December and that the company would expand testing to Phoenix and Nevada, not just Austin and the Bay Area. The next big move for Tesla is removing the safety drivers entirely in Austin, a step Elon has been teasing for weeks.
Dan Ives of Wedbush, one of Wall Street’s strongest Tesla bulls, said the plan is finally coming together. In a note on Monday he wrote, “Heading into 2026 this marks a monster year ahead for Tesla and Musk as the autonomous and robotics chapter begins.”He said the firm expects a faster Robotaxi rollout across the country and believes volume production of the new Cybercabs will begin in April or May.
That model became a major part of Tesla’s story last October when Elon showed off the two-seater design at an event in Hollywood. The car had no wheel, and no pedals, and the reveal turned the Cybercab into the main symbol of Tesla’s Robotaxi push.
Reviews of FSD add more momentum
Ives said 2026 may be the year that flips the script for Tesla, adding that the company is making real progress in its AI goals.
He said, “We believe Tesla is taking major steps in advancing its AI Revolution path with autonomous and robotics front and center heading into 2026, that will be a ‘game changer and define Tesla’s future.’”
That view gained more traction after several testers reviewed the latest version of the company’s FSD system and said it performs much better than older versions.
Jason Cammisa, a well-known reviewer, said after a long trip in San Francisco, “This is door-to-door amazing. Couldn’t believe it.”
Barron’s reporter Al Root also tested the update and said it was a “step up” from earlier releases. He said passengers liked the system more than his own driving and added, “Today, I prefer to let FSD do most of the driving most of the time. It makes life a little easier and, when under supervision, adds a layer of safety that passengers have come to appreciate.”
But he did note that Waymo still shows stronger safety numbers for now.
The strong reviews, the Austin testing clip, and Elon’s comments pushed Ives to keep his Outperform rating and his $600 price target. He also talked about a possible $2 trillion valuation.
In his words, “The march to an AI driven valuation for TSLA over the next 6-9 months has now begun in our view with FSD and autonomous penetration of Tesla’s installed base and the acceleration of Cybercab in the US representing the golden goose for Musk & Co.”
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