It has been a major return to form for Tesla (TSLA) over the last month. Despite its early struggles, the EV manufacturer has once again become one of the biggest gainers of the Magnificent 7. Indeed, Tesla may yet have $500 upside this year, with two reasons the stock can challenge its record high in 2025.
The company has gone through a roller coaster many investors hadn’t signed up for. It struggled through a near-brand crisis to start the year, with the ever-divisive Elon Musk proving to be a hindrance. Yet, that has flipped completely, as he has positioned the company to once again soar this year.
Tesla Eyes $500 All-Time High In 2025 Amid Remarkable Turnaround
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2025 has not been kind to any of Wall Street’s mega-cap stocks. Amid increased geopolitical tension and macroeconomic uncertainty, investors have been increasingly hesitant. That was magnified for Tesla, as the company also struggled with a politically affiliated CEO that had long been the reason for its value.
That has changed drastically, and so too have the company’s fortunes. Over the last month alone, the EV firm has jumped more than 23% to hit the $361 level. That may not be the end of its yearly surge, however.
Currently, the stock has 38% upside, according to CNN data. That would indicate that Tesla would reach a $500 all-time high before the year is through, and that potential will come to fruition for two very specific reasons.
Elon Musk’s Return
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The greatest point of emphasis for the Tesla brand has always been CEO Elon Musk. He has continued to be the face and voice of the company and remained its key driver as far as interest and investment. That reality is a big reason why the stock’s poor start has it down 4.79% year-to-date.
Musk took a position with the Trump administration’s DOGE commission. He was tasked with cutting government spending and was a divisive face in the often contentious political sector. That has changed now, with the executive officially leaving his post in the White House.
That has already been massive for Tesla’s Wall Street performance, and it should only continue. With public ties all but severed, time will create even more distance. This will allow public boycotts of Tesla to cease. Moreover, it will happen as it awaits its more important product’s arrival.
The Arrival of the Tesla Robotaxi
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Elon Musk has long heralded the potential of the Tesla Robotaxi. The autonomous driving product is set to revolutionize transportation if it lives up to the company’s billing. That has always been the concern with the firm: overpromising and underdelivering.
Still, the Robotaxi has officially planned a critical June 12th launch date. Additionally, that should bring investors tangible evidence that the product is nearing a worldwide launch. When that happens, it should unlock unparalleled opportunities for its stock value.
Musk has already promised that the Robotaxi will unlock $1 trillion in market value. That number, although optimistic, could be very true. Its arrival will fulfill Tesla’s transformation from EV manufacturer to full-blown robotics firm. Moreover, that transition could see its value as a tech firm jump even higher.