Tesla (TSLA) shares ripped higher on Friday, extending a multi-day rally fuelled by renewed investor excitement around billionaire CEO Elon Musk’s artificial intelligence ambitions.
The chief executive’s recent remarks about TSLA’s future value being driven by humanoid robots have reignited speculative interest, with traders betting on long-term upside.
Despite concerns of slowing electric vehicle sales and an elevated valuation, Tesla stock is currently up some 80% versus its year-to-date low in early April.
The recent surge in TSLA stock reflect investors’ belief that a focus on humanoid robots could reshape the company’s narrative.
Earlier this month, Musk said “80% of Tesla’s value will be Optimus” – referring to the Nasdaq-listed firm’s humanoid robot initiative.
With EV growth stagnating and competition intensifying, the billionaire is betting big on artificial intelligence and automation to drive future value.
Tesla aims to scale Optimus production to 1 million units annually within five years, with prototypes already in development. While skeptics question the timeline and commercial viability, Musk’s track record of bold execution has investors intrigued.
If Optimus delivers even a fraction of its promise, TSLA stock could indeed catapult much higher.
Options data from Barchart suggests Tesla shares could move as much as 20% up or down by the end of the year.
Contracts expiring Dec. 19 imply a broad trading range between $316.88 and $472, reflecting meaningful room to the upside. Moreover, the expected move through Sept. 26 is 7.13%, according to options pricing, with a projected range of $366.33 to $422.55.
Given the recent rally and investor enthusiasm around Musk’s artificial intelligence roadmap, the upper bound appears more likely.
The options data suggests traders are pricing in continued momentum in TSLA shares. However, with the EV stock already trading at stretched valuation, the bullish sentiment may be driven more by narrative than near-term catalysts.
That said, the market evidently is leaning into Musk’s vision, at least for now.
Wall Street’s recommendation on Tesla stock, however, is in stark contrast with what the options data suggests.
