- Tesla is pivoting from just a car manufacturer to a tech company
- CEO Elon Musk recently announced successful testing of robotaxis without human safety monitors
- Struggles by competitors such as Ford's $19.5 billion EV writedown add to Tesla's attractiveness
Tesla’s stock (NASDAQ: TSLA) is doing its own thing, even though everyone else is focused on interest rates. It feels like the company’s big bets are paying off, no matter what’s happening in the market. If you’ve kept an eye on Tesla this year, it’s been quite a ride. The year began with worries that people weren’t buying EVs as much, and that Tesla’s profits were getting smaller. But now, the company is almost worth $1.6 trillion. So, what’s making Tesla’s stock go up so much right now?
Full Self-Driving Milestone Triggers Rally
The main reason for the rise in December is that people now see Tesla as an AI and robotics company, not just a car company. Investor confidence increased after Elon Musk said Tesla started testing fully self-driving robotaxis in Austin, Texas, without any human backup. Analysts at Mizuho recently hiked their Tesla stock price target to $530, noting that their research shows Tesla’s FSD software can now operate without intervention more than 99% of the time.
Tesla’s Competitors Are Stumbling
It also helps that Tesla’s traditional competitors are stumbling. While Tesla scales, Ford recently announced a massive $19.5 billion writedown on its EV business and canceled plans for larger electric models. In the eyes of investors, Tesla isn’t just winning the race; it’s the only one still running at full speed while others are pulling into the pit stop.
Can Tesla Stock Hit $500 Before the New Year?
The stock is only 2% away from $500, so it could reach that in the next few days. With lots of shares being traded every day and strong sessions, traders are hoping for a quick push, especially if there are more self-driving milestones. But, Tesla’s Price-to-Earnings (P/E) ratio is very high, around 300.
CNBC reports that investors are supporting Elon Musk’s plan for self-driving cars, even with recent sales figures not being as strong. Wider support includes excitement around AI and robotics, with updates on Optimus and strong energy storage adding to the belief in the company.
Tesla Stock Price Prediction
TSLA’s RSI nears 70 on daily charts, signaling it’s nearly overbought, and sustaining in bull phases but flashing exhaustion risks. The next barrier is at $495, beyond which the psychological $500 mark will offer technical resistance. If it goes higher, $530 is the next key target. If the price drops, $480, the first support will likely be at $470, below which the upside narrative will be invalid and the resulting momentum potentially open the path to test $455.
Tesla stock price daily chart on December 16, 2025 with key support and resistance levels created on TradingView
The main catalyst was Elon Musk’s confirmation that Tesla is testing driverless robotaxis in Austin without safety monitors. This progress in autonomous software has convinced many investors of Tesla’s future as an AI leader.
The $500 mark is a major psychological resistance. Breaking and staying above this level would likely trigger a fresh wave of institutional buying and could signal a move toward higher targets,
Major rivals like Ford taking multi-billion dollar writedowns on their EV programs have highlighted Tesla’s manufacturing efficiency and software lead. This competitive “moat” has made Tesla a safe haven for investors still bullish on electrification.
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