Tesla (TSLA) stock rose on Thursday, shortly after Nvidia (NVDA) released a better-than-expected quarterly earnings report. Many market watchers have been following NVIDIA’s performance with bullish views not only on the stock price, but also on AI trading and the market in general. Tesla has long been involved in the AI market with its self-driving car capabilities and Robotaxi program powered by Nvidia AI chips.
Nvidia CEO Jensen Huang told analysts on an earnings call that “a new wave is happening” in agent AI systems. Discussing new frontiers in AI, Huang highlighted “AI drivers like Tesla FSD and Waymo,” and listed Tesla and Musk’s xAI, a “pioneering agent AI,” among the “fastest growing companies in the world right now.”
Tesla (TSLA) Bulls Wake Up This Week
Earlier this week, investment bank Stifel raised its forecast for Tesla (TSLA) stock. Analyst Steven Gengaro raised his price target on Tesla from $483 to $508, while maintaining a buy rating on the stock. “We believe Tesla’s AI-based fully self-driving (FSD) technology and robotaxi efforts are critical to this story and a large part of our valuation,” Gengaro said in an investor note to clients this week. The analyst strongly believes in Tesla’s strengths in fully self-driving (FSD) and robotaxi services.
Gengaro is also bullish on the rollout of robotaxis, Tesla’s paid service in Austin and the San Francisco Bay Area. “Tesla management has indicated plans to expand into approximately eight to 10 metropolitan areas by the end of 2025,” Gengaro said of executives’ comments on the third-quarter earnings call.
Nvidia’s strong earnings report paints a bullish outlook for AI-based stocks like Tesla TSLA heading into 2026. Musk and Tesla are going full steam ahead with Tesla’s emphasis as an AI and robotics company. On Saturday, Tesla’s CEO posted on X that he had “just finished” a design review of the upcoming AI5 chip. Musk added that the AI5 chip “won’t be available in sufficient quantities to switch Tesla’s production lines until mid-2027.” If some kind of partnership with Nvidia accelerates that timeline, Tesla stock could rise further.
