Tesla shares climbed approximately 1.7% in Tuesday's pre-market activity, continuing an upward trend from the previous session. The stock opened at $418.08, reaching an early high of $424.36.
AI Narrative Drives Sentiment
The move reflects Tesla's evolving identity among traders, who increasingly view it as a play on artificial intelligence and autonomous driving rather than a traditional automaker. This shift makes the stock more sensitive to technology-sector developments and macroeconomic indicators that affect growth-oriented investments.
Reports indicate Apollo Global Management is nearing finalization of a $3.4 billion loan facility to fund the acquisition of Nvidia processors, which would then be leased to Musk's xAI venture. This news has redirected market attention toward Tesla's AI and robotaxi ambitions.
Broader Competitive and Macro Landscape
In the autonomous vehicle sector, Alphabet's Waymo announced the expansion of its fully driverless service in Nashville, highlighting intensifying competition. Meanwhile, Tesla recently committed $2 billion to xAI and reaffirmed its timeline for Cybercab production.
Analysts note that the market is pricing in future revenue streams that are not yet fully visible, leaving Tesla vulnerable to sentiment shifts. The company's significant capital expenditure plans—projected to exceed $20 billion this year—shift focus toward operational rollout metrics.
The immediate test for Tesla and other rate-sensitive stocks will be Wednesday's delayed U.S. employment report. Economists surveyed by Reuters anticipate the addition of 70,000 nonfarm payrolls for January, data that could recalibrate expectations for Federal Reserve policy.
