Tesla Stocks Soar Amid Promises of Future Growth

Tesla's stock surged nearly 12% following CEO Elon Musk's forecast of a 20%-30% car sales growth. Despite concerns over his focus on AI and robotics, Musk reassured investors with promises of affordable vehicles and better margins. However, skepticism remains regarding his ambitious robotaxi plans.

Tesla witnessed a significant 12% surge in its stock price during pre-market trade on Thursday, following promises of considerable car sales growth from CEO Elon Musk. This spike comes as a relief to investors, offsetting recent concerns over Musk's involvement in new, non-core projects like the robotaxi.

Despite attempting to pivot Tesla towards artificial intelligence and robotics, Musk has yet to provide a detailed business strategy for his focus areas. Previously, his announcements leaned heavily toward futuristic concepts such as driverless taxis, raising eyebrows among stakeholders concerned about profit margins impacted by slashed prices.

In a post-earnings call, Musk predicted a 20%-30% increase in vehicle sales and confirmed efforts to reduce production costs. However, doubt lingers, with some investors unconvinced about the viability of the robotaxi vision. Musk reiterated his commitment to autonomous ride-hailing services, which still face regulatory hurdles.

(With inputs from agencies.)