Tesla's Bold AI Pivot Sparks Investor Reactions

Tesla's stock soared after CEO Elon Musk reassured investors of strong EV sales growth, despite his shift towards AI and robotics. While new ventures like robotaxis face regulatory hurdles, Musk's promise of affordable EV options and improved production margins has temporarily eased investor concerns.

Tesla's stock witnessed a 12% surge pre-market on Thursday following a forecast of significant car sales growth by CEO Elon Musk. This assuaged investor fears of Musk being overly distracted by new projects, such as the robotaxi, instead of expanding the core electric vehicle business.

Musk's recent ventures in artificial intelligence and robotics raised eyebrows, with investors seeking concrete business strategies. Promising a 20%-30% sales growth in the coming year, Musk assured cost-efficient production would improve profit margins, reviving focus on core EV operations.

While investor sentiment improved post-earnings call, challenges persist. Regulatory approvals for robotaxi services remain uncertain, and influential investors like Ross Gerber express desire for Musk to concentrate on Tesla's fundamental business. Brokerages, nonetheless, have responded by adjusting their price targets upwards.

(With inputs from agencies.)