TLDR
- Tesla stock closed up 3.5% at $411.11 Friday, recovering from a 4% weekly decline driven by broader tech selloff
- Congress held hearing on autonomous vehicle standards with Tesla and Waymo representatives testifying about self-driving technology rollout
- Company discontinued Model S and Model X production to retool factories for humanoid robot manufacturing instead
- Tesla trades at P/E ratio of 390, far above its five-year average of 98 and S&P 500’s 28 multiple
- Robo-taxi service launched in Austin in June 2025, with plans to expand to nine cities by mid-2026
Tesla stock finished Friday up 3.5% at $411.11. The gain helped offset a brutal week for tech stocks.
The broader market bounced back too. The S&P 500 gained 2% while the Dow Jones Industrial Average climbed 2.5%.
Despite Friday’s rally, shares still dropped 4% for the week. The stock fell in 12 of the past 17 trading sessions before Friday’s recovery.
No specific Tesla news drove the Friday gain. Wall Street analysts didn’t issue any upgrades or price target changes.
The week’s losses came from the broader tech selloff. The Nasdaq Composite fell nearly 4% through Thursday as investors dumped technology names.
Alphabet dropped after earnings disappointed. Amazon stock tumbled Friday after reporting results Thursday night. Software stocks got hammered on fears AI was disrupting their businesses.
Congress Examines Self-Driving Standards
Earlier in the week, Congress held hearings on autonomous vehicle standards. Representatives from Tesla and Alphabet’s Waymo testified about self-driving technology.
The hearings focused on understanding how autonomous vehicles might roll out nationwide. Self-driving tech matters for Tesla’s future plans.
The company launched its robo-taxi service in Austin, Texas last June. It competes directly with Waymo in that market.
Tesla plans to operate robo-taxis in nine cities by mid-2026. The expansion represents a key growth area beyond traditional vehicle sales.
Factory Retooling for Robot Production
Tesla made a major announcement about its production strategy. The company is discontinuing Model S and Model X production entirely.
Those factories won’t build new EV models. Instead, Tesla is retooling them to manufacture humanoid robots.
The shift transforms Tesla from a pure car company into a robotics play. The decision will take several years to fully materialize.
CEO Elon Musk believes robots could become a massive business for Tesla. The move funds future technology investments with current EV profits.
Tesla’s valuation reflects these ambitious bets. The stock trades at a P/E ratio of 390, dramatically higher than traditional automakers.
That valuation towers over the S&P 500’s P/E of 28. It also exceeds Tesla’s own five-year average P/E of 98.
The price-to-sales and price-to-book ratios also sit at elevated levels. Value investors typically avoid stocks with such rich valuations.
Other automakers faced tough news this week. Stellantis disclosed write-downs on EV assets and canceled its dividend.
The stock plunged almost 24% on that announcement. Ford and GM have taken similar write-downs on EV investments in recent months.
Slowing EV sales have forced manufacturers to reassess their electric vehicle strategies. These write-offs aren’t surprising given market conditions.
Tesla’s business extends beyond cars. The company also produces battery storage systems and solar power products.
Coming into Friday, Tesla stock was up just 6% over the past 12 months. The 52-week range spans from $214.25 to $498.83.
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