Tesla shares recovered on Friday after an early slide, signaling some stabilization in a tech sector that has been under stress for several days. The stock opened lower as markets continued reacting to Thursday’s broad sell-off, but sentiment gradually improved as investors returned to growth names. Despite the bounce, Tesla remains roughly 9 percent lower since CEO Elon Musk secured his record-setting $1 trillion compensation package, a milestone that has introduced additional volatility into an already sensitive market.
For the week, Tesla is still on track for a significant decline, trading about 7 percent lower as of Friday morning. The stock also dropped below a key technical support level at $400 earlier in the week before finding some footing. Thursday’s downturn marked Tesla’s weakest price since September, driven largely by shifting expectations around Federal Reserve policy. With odds of a December rate cut fading, investors have been reassessing their exposure to high-valuation technology stocks, creating pressure on both mega-cap growth names and companies tied to the accelerating artificial intelligence cycle.
Concerns about the pace and sustainability of AI spending have also contributed to a rotation into sectors viewed as more reasonably priced. Still, long-term Tesla supporters remain focused on the company’s innovation roadmap, pointing to autonomous driving, robotics, and next-generation AI systems as core drivers of future value. This outlook is being reinforced by new analyst projections that indicate Tesla may be approaching major milestones in key technology programs.
One of the most closely watched developments is Tesla’s effort to advance its Robotaxi initiative. Analysts expect the company to proceed with removing human safety drivers from its autonomous trials in Texas and at least one additional state. If executed, this would represent a pivotal step toward launching commercial autonomous mobility services. Tesla has also highlighted several cities—including Miami, Dallas, Phoenix, and Las Vegas—as upcoming expansion zones for Robotaxi testing, suggesting broader deployment is on the horizon.
Tesla’s deepening relationship with xAI, Musk’s artificial intelligence company, is another major area fueling investor interest. Industry observers anticipate Tesla will integrate xAI’s computational capabilities to accelerate Optimus, its humanoid robot platform. This collaboration could significantly enhance Optimus’s learning speed, coordination, and operational reliability, strengthening Tesla’s position in the rapidly emerging robotics sector.
The company has outlined ambitious production plans for Optimus, beginning with a target of manufacturing one million units at its Fremont facility, followed by a long-term expansion to a ten-million-unit line at Giga Texas. Optimus is currently in pilot production, and investors are closely watching for signs that Tesla can scale the platform to commercial volume. Many believe humanoid robots could eventually become one of Tesla’s largest business lines, potentially surpassing automotive revenue in the long run.
Although recent market volatility has pressured the stock, several analysts remain constructive on Tesla’s long-term outlook, citing its advancements in AI, robotics, and autonomous transportation as foundational pillars for future growth. Investors are now closely monitoring technology updates, regulatory progress, and production milestones to evaluate how quickly these innovations can begin contributing meaningful earnings.
