Why Tesla stock put pedal to metal today

Tesla's robotaxi is coming in August.

| More on:
woman with coffee on phone with Tesla

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Tesla (NASDAQ: TSLA) stock is enjoying what feels like a rare "up" day Monday morning, as investors parse some confusing news. Last week Reuters reported that Tesla has abandoned its plans to build a Model 2 electric car priced at less than $25,000, in order to focus its efforts on building "robotaxis" instead.

CEO Elon Musk quickly dismissed the rumor on social media platform X, saying Reuters was "lying."

But Tesla stock still took a hit on Friday, falling nearly 4%. Today, however, Tesla is winning back its losses -- and more -- as its stock bounces 4.2% through 10:05 a.m. ET.

Tesla tweets

Citing unnamed sources, Reuters reported last week that Tesla has entirely "canceled" plans to build the Model 2 electric car -- which at a rumored price of $25,000 could be key to Tesla's efforts to compete with low-priced electric cars from China. Musk was quick to dismiss the report in part, but he did seem to endorse the other half of what Reuters was saying -- the bit about the robotaxi.

In a tweet following up on Reuters' article, Musk confirmed that Tesla will announce a new self-driving electric vehicle (EV), which he called his "robotaxi," on Aug. 8.

Is Tesla stock a sell?

And that's really all he said on the matter. So what are investors supposed to make of these dueling Tesla reports, one from a respected news organization quoting inside sources at Tesla, and the other from Tesla's CEO himself?

Clearly, nothing's 100% clear right now. But the most likely scenario seems that Tesla has made robotaxis its new top priority, while pouring money into developing a cheap EV is now taking a back seat. In the middle of an EV price war, that seems a sound strategy that could preserve profit margins for Tesla. It's not a reason to sell Tesla stock.

But it might be a reason to buy. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Rich Smith has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on International Stock News

Delighted adult man, working on a company slogan, on his laptop.
International Stock News

Prediction: This artificial intelligence (AI) stock will be worth $5 trillion in 5 years

Amazon is integrating artificial intelligence (AI) across many areas of its business.

Read more »

Robot humanoid using artificial intelligence on a laptop.
International Stock News

Google must win at artificial intelligence or its search business could crumble. Does this make Alphabet an AI stock to buy?

Here's a deeper look into how Alphabet is faring in the battle for AI supremacy.

Read more »

A delivery man wearing a cap and smiling broadly delivers two boxes stacked on top of each other at the door of a female customer whose back can be seen at the edge of a doorway.
International Stock News

2 "Magnificent Seven" stocks billionaires are buying

The Magnificent Seven includes some of the most profitable and dominant tech companies in the world.

Read more »

Happy man working on his laptop.
International Stock News

Prediction: This artificial intelligence (AI) stock will be the biggest winner of 2025

Artificial intelligence will be one of the biggest growth opportunities this century.

Read more »

Legendary share market investing expert and owner of Berkshire Hathaway Warren Buffett
International Stock News

Could Warren Buffett's last move as Berkshire Hathaway CEO be buying this beaten-down "Magnificent Seven" stock?

Buffett is a value investor at his core, and he doesn't often buy shares of expensive companies.

Read more »

A woman holds a soldering tool as she sits in front of a computer screen while working on the manufacturing of technology equipment in a laboratory environment.
International Stock News

Prediction: This artificial intelligence (AI) stock will be worth $5 trillion in 3 years

Let's take a closer look at the catalysts that could propel this stock toward that valuation.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
International Stock News

This Artificial Intelligence (AI) chipmaker just got a game-changing boost from Amazon, and Nvidia investors should be paying close attention

Amazon just made a notable investment in Nvidia's top rival.

Read more »

Happy man working on his laptop.
International Stock News

A once-in-a-decade opportunity: Here's why I'm buying Alphabet stock like there's no tomorrow

Alphabet's stock rarely gets this cheap, and right now could be a once-in-a-decade opportunity to scoop up shares at a…

Read more »