Can Tesla Stock Go Higher: Key Drivers and Market Outlook
Can Tesla stock go higher? This is a question on the minds of many investors and market watchers, especially as Tesla continues to make headlines with its technological advancements and regulatory milestones. In this article, we break down the latest developments, financial data, and industry context to help you understand what could drive Tesla’s stock price in the coming months.
Regulatory Progress and Technological Expansion
As of September 20, 2025, according to Cryptopolitan, Tesla has received approval to test its robotaxi program with a safety monitor onboard in Arizona. This follows similar permissions in Texas and Nevada, marking Arizona as the third state to greenlight Tesla’s autonomous vehicle trials. The company aims to start operations in the Phoenix area, having initiated the permit process with the Arizona Department of Transportation in late June 2025.
While Tesla’s robotaxis are not yet fully driverless, these regulatory advances signal growing acceptance of Tesla’s Full Self Driving (FSD) technology. Each step forward in autonomous vehicle testing could enhance Tesla’s long-term growth prospects and support the argument that can Tesla stock go higher is a relevant question for investors.
Financial Performance and Stock Movement
Tesla’s stock has shown significant volatility in 2025. After a challenging first quarter and a sharp drop in April—triggered in part by tariff announcements—Tesla shares rebounded strongly. As of the week ending September 20, 2025, Tesla’s stock closed at $426, up 5.2% for the week and 85% above its April low of $221.86. This recovery was further fueled by news that Elon Musk, through his family foundation, purchased $1 billion in Tesla shares, according to a recent SEC filing.
Despite this rebound, Tesla remains the second-worst performing stock among major tech companies in 2025, with only Apple faring worse. The company continues to face challenges such as aging vehicle models and increased competition from lower-cost electric vehicles, particularly from Chinese manufacturers.
Industry Trends and New Business Initiatives
Tesla is not just focused on vehicles. The company recently introduced MegaBlocks battery systems, targeting businesses seeking to optimize energy costs and leverage renewable sources like solar and wind. This diversification aligns with broader industry trends toward energy storage and sustainability, potentially opening new revenue streams for Tesla.
Institutional interest in Tesla remains strong, as evidenced by ongoing ETF activity and analyst attention. However, the company’s ability to scale its robotaxi network and achieve full autonomy will be closely watched by both regulators and investors. As of now, all robotaxi tests require a safety driver, and there is no confirmed timeline for fully driverless operations.
Common Misconceptions and Risk Factors
Many believe that regulatory approval alone guarantees rapid stock appreciation. However, the reality is more nuanced. Tesla must still secure a transportation network license to offer public rides in Arizona, similar to the requirements for ride-hailing companies. Additionally, the company’s reliance on unreleased FSD software means that technical and safety hurdles remain.
Market risks also include fluctuating demand, global economic conditions, and ongoing competition. Investors should be aware that while the question can Tesla stock go higher is valid, the answer depends on a complex interplay of innovation, regulation, and market sentiment.
What to Watch Next
Looking ahead, key indicators for Tesla’s stock performance include:
- Progress toward fully autonomous robotaxi deployment
- Expansion of energy storage and battery solutions
- Updates on vehicle sales and new model launches
- Institutional investment activity and regulatory filings
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Further Exploration
As Tesla continues to innovate and expand, staying informed about regulatory changes, financial results, and industry trends is crucial. For more insights on market movements and trading strategies, explore Bitget’s educational resources and stay ahead in the fast-evolving world of technology and finance.
