Tesla Shares Rebound as Focus Shifts from Cars to Robotaxis and AI

Tesla stock regained some lost ground Wednesday after a sharp drop on Tuesday, when investors were left underwhelmed by the company’s unveiling of cheaper Model 3 and Model Y trims — updates that fell short of the market’s hopes for entirely new models or deeper price cuts.

The midweek rebound wasn’t just bargain hunters buying the dip. Wall Street’s focus on Tesla is increasingly shifting beyond electric vehicles toward its ambitions in autonomous driving, humanoid robots, and a future robotaxi network — ventures many see as the company’s next big profit drivers.

Reinforcing that bullish narrative, Tesla rolled out a new Full Self-Driving (FSD) update promising “overall improvements” in smoothness and confidence. The update also introduced a new driving mode called “Sloth”, designed to operate more cautiously at lower speeds with gentler lane changes.

Although Tesla still requires driver supervision when using FSD, the technology continues to draw both investor excitement and regulatory scrutiny. Critics argue the branding overstates the system’s current capabilities, but analysts remain optimistic about its long-term potential.

Earlier this week, Stifel analysts raised their Tesla price target to $483 from $440, citing the company’s continued FSD progress and expanding robotaxi vision. They expect a U.S. launch of “Unsupervised FSD” — a fully autonomous version — could arrive as early as next year, though a mid-term timeline seems more realistic.

Looking ahead, analysts see Tesla’s robotaxi network as a potential game-changer, one that could significantly boost revenue and reshape the company’s financial outlook by late 2026.

Still, Tuesday’s event underscored Tesla’s balancing act — appealing to mainstream buyers with affordable EVs while convincing investors its true future lies in AI-driven mobility and robotics.