Tesla Inc. shares surge 3.56% on anticipated autonomous technology and AI advancements

Tesla Inc. shares surged 3.56% in pre-market trading on Dec. 16, 2025, signaling renewed investor optimism ahead of anticipated developments in autonomous technology and AI integration.

Wedbush analyst Dan Ives reinforced a $600 price target for the stock, calling 2026 a “monster year” as advancements in autonomy and robotics position Tesla to redefine its growth trajectory. Reports of driverless Model Y testing in Austin further bolstered confidence in accelerated robotaxi deployment timelines.

Recent volatility persisted after Morgan Stanley downgraded the stock to “Equal-Weight,” citing elevated valuations despite raising its price target to $425. Analysts caution a “choppy” trading environment through 2026, with Tesla’s 2026 production forecasts expected to fall below consensus estimates.

Tesla’s stock has gained 25.8% year-to-date, nearing its 52-week high of $479.86. The rally reflects investor bets on its AI-driven innovations, though market reactions remain mixed amid broader sector caution.