Tesla Stock Rebounds After Disappointing Reveal — Focus Shifts to FSD and Robotaxi Future
Tesla’s stock bounced back Wednesday, clawing back some of the losses from Tuesday’s selloff after its new, lower-priced Model 3 and Model Y versions failed to impress investors hoping for entirely fresh models or deeper price cuts.
The recovery may be more than just dip-buying. Many on Wall Street now view Tesla as a broader technology play — driven by its ambitions in humanoid robots, autonomous driving, and a future robotaxi network — rather than simply an electric vehicle maker.
Fueling that bullish narrative, Tesla rolled out an update to its Full Self-Driving (FSD) software, promising “overall improvements” in smoothness and confidence. The update also introduced a new “sloth” driving mode — a slower, more cautious profile for those preferring gentler lane changes and lower speeds.
While FSD still requires driver supervision and faces regulatory scrutiny, analysts see continued progress. Stifel recently raised its Tesla price target to $483 from $440, citing optimism over FSD advancements and potential robotaxi monetization.
Tesla aims to launch Unsupervised FSD — a system capable of fully autonomous operation — in the U.S. by year-end, though Stifel notes that timeline “appears to be a stretch,” expecting broader impact by late 2026 as the robotaxi fleet scales.
Tuesday’s reveal of cheaper Model 3 and Model Y trims may have disappointed, but Wednesday’s rebound suggests investors remain focused on Tesla’s long-term AI-driven roadmap — not just its vehicles.
