Tesla Stock Hits First Record High Since 2024

Shares posted their first record close since December 2024, further cementing the dominance of the “Magnificent Seven.”

Nearly a year after its previous all-time closing high, Tesla stock finally broke through on Tuesday. The shares ended the session at $489.88, their first record close since December 17, 2024, according to Dow Jones Market Data. Intraday, the stock also climbed above $490 for the first time, touching a high of $491.50.

The new high reflects the dramatic shift in Tesla’s narrative over the past year. In late 2024, enthusiasm centered on expectations that CEO Elon Musk’s close relationship with President Donald Trump would benefit the company. That optimism faded quickly as the relationship deteriorated, while Tesla’s brand became increasingly politicized and sales momentum weakened.

By February, anti-Tesla protests in the U.S. and abroad had intensified, driven by criticism of Musk’s political ties, including associations with far-right figures in Europe. At the same time, slowing demand in China weighed on results, pushing Tesla toward an annual sales decline and dragging the stock down to a low of $221.86 in early April.

Since then, shares have mounted a sharp recovery, powered by growing confidence in Tesla’s artificial intelligence and robotics roadmap. Investor approval of a long-term compensation package binding Musk to the company for at least a decade has also bolstered sentiment, alongside anticipation of a future SpaceX initial public offering.

The latest leg higher followed Musk’s confirmation that Tesla has begun testing fully autonomous vehicles in Austin, Texas, where it already operates a ride-hailing service. Currently, all trips using Tesla’s advanced driver-assistance system are supervised by employees.

“Unsupervised is pretty much solved at this point,” Musk said recently at an event hosted by his xAI startup, which Tesla may invest in. “So there will be Tesla robotaxis operating in Austin with no one in them.”

Musk has said those robotaxis could be on the road by the end of December. Tesla also plans to expand its fleet and roll out service in additional cities across Florida, Nevada, Arizona and Texas by month’s end, though regulatory approvals are still pending in some states.

Optimism among Tesla supporters remains strong. Wedbush analyst Daniel Ives, a longtime Tesla bull, said Monday that the company’s AI and robotics ambitions could drive its valuation to as high as $3 trillion by the end of 2026.

Tesla is currently valued at roughly $1.63 trillion and on Tuesday surpassed Broadcom to become the seventh-largest U.S. company by market capitalization, according to Dow Jones Market Data—a rank it had not held since late May.

With Tesla’s advance, the seven largest U.S. companies are once again all part of the elite group of megacap tech stocks known as the “Magnificent Seven,” marking the first time that lineup has been complete since May 29.