Tesla ( (TSLA) ) has risen by 9.13%. Read on to learn why.
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Trade TSLA with leverageTesla shares climbed 9.13% over the past week as investors looked past a string of recalls and instead focused on the company’s growing artificial intelligence ambitions and better‑than‑feared financial results. While a hardware issue affecting 173 Cybertrucks and a separate recall of more than 218,000 vehicles would normally rattle an automaker’s stock, Tesla’s ability to fix most problems via software and its rapid rollout of “remedy firmware” reassured the market. The stock even rose on the recall headlines, helped by news that the long-delayed Roadster appears closer to launch after fresh trademark filings.
Beneath the headlines, Tesla’s latest quarterly numbers helped support the rally. First‑quarter 2026 earnings per share beat expectations, and automotive gross margins excluding credits came in well above Wall Street estimates, showing that the core electric vehicle business is still highly profitable despite slower unit growth. Strong free cash flow gives Tesla room to fund rising capital spending, which management has lifted to about $25 billion in 2026 for new factories, AI infrastructure, the Semi, Cybercab, Megapack 3 and the Optimus humanoid robot program. This spending shift reinforced the narrative that Tesla is evolving from a pure EV maker into a broader technology and AI platform.
The market’s enthusiasm is increasingly tied to that AI story. Tesla is pushing ahead with Full Self‑Driving, robotaxis and the Optimus robot, while also investing in custom AI chips and deeper integration with partners like SpaceX. Paid FSD subscriptions continue to grow, robotaxi miles are rising, and the company is targeting unsupervised FSD and wider U.S. and international rollout over the next couple of years. Although analysts still see the stock as a “Moderate Buy” and warn that its valuation is rich, this week’s 9.13% gain shows investors are willing to pay up for the potential of high‑margin, recurring software and AI revenue that could one day dwarf today’s car sales.