Tesla (TSLA, Financial) shares jumped 10% amid reports of regulatory changes and market speculation. The stock closed up 9.8% at $284.95, marking an 18% weekly gain. Despite this, Tesla's price remains 30% below its 2025 projections, having previously fallen 50% from its December high.
The Trump administration announced plans to ease regulations on autonomous vehicles, simplifying accident reporting processes. This move is seen as a major step towards facilitating autonomous vehicle testing and innovation, directly benefiting Tesla's plans for its Cybercab autonomous taxi fleet in Texas. CEO Elon Musk confirmed the company's intention to sell fully autonomous cars in Austin by June.
Additionally, Tesla's refund to early Model 3 reservation holders in India has fueled speculation about new vehicle launches in the country. The refunds are attributed to the discontinuation of the older Model 3, and Tesla is reassessing its market entry strategy due to high tariff impacts.
Earlier, Tesla reported a disappointing Q1 financial performance, with a 9% revenue decline and a 40% drop in profits. While energy storage showed growth, automotive revenue fell 20%. Morgan Stanley remains optimistic, maintaining an "overweight" rating and raising the price target to $410, despite reduced earnings forecasts.
