Tesla Inc (NASDAQ:TSLA) shares raced to new all-time highs on Tuesday with momentum accelerating into the close. Here’s what investors need to know.<ul><li>Tesla stock is breaking out. What’s behind TSLA new highs?</li></ul>What To Know: Tesla stock ripped into the close on Tuesday as optimism continues to mount surrounding the EV company’s autonomous ambitions. It’s less of an EV story heading into 2026 as the narrative has shifted to autonomy, robotics and AI. Still, Tesla currently generates a majority of its revenue from electric vehicle sales.CEO Elon Musk confirmed this week that Tesla began testing its robotaxis in Austin without anyone in the vehicles. The company first rolled out its robotaxi platform using modified Full Self-Driving Model Y vehicles in June. The initial rides also featured a human “safety monitor” in the passenger seat.In a post on X over the weekend, Musk confirmed that robotaxis are now being tested with “no occupants in the car.”Investors appear to be looking ahead to the company’s anticipated Cybercab launch, expected next year. Meanwhile, traditional ride-hailing operators have battled with selling pressure over the past week after Alphabet’s Waymo announced that it’s completing 450,000 rides per week and expects to exceed 20 million lifetime trips by the end of the year.Investors are increasingly pricing Tesla shares as less of an EV manufacturer and more of a software, robotics and AI powerhouse, with the potential to unlock recurring mobility revenue at scale.Wedbush analyst and longtime Tesla bull Dan Ives said in an X post on Monday that 2026 is setting up to be a “monster year” for Tesla, citing traction for autonomous and robotics.“We believe Tesla hits a $2 trillion market cap in 2026 and in a bull case scenario $3 trillion by end of 2026,” Ives wrote in the post. Ives has an Outperform rating on Tesla shares with a Street-high price target of $600. Wall Street analysts have an average price target of $401.29 on Tesla stock with a consensus Buy rating, according to Benzinga data. Recent reports suggest Musk’s SpaceX could go public next year at a $1.5 trillion valuation. Ives said this week that he believes a potential IPO will only expand the Musk ecosystem for Tesla investors, adding that the AI revolution is likely in the early stages of an eight-to-10-year buildout. The orbital data center theme is also starting to emerge in markets with Musk saying in a recent interview that the future will involve a convergence of SpaceX, Tesla and xAI technology, sparking excitement across the Tesla bull herd. In the same interview, Musk revealed that Tesla plans to commence scaled production of its Optimus bots in mid-2026, pushing investor excitement to a fresh peak alongside Tesla stock.“I think everyone’s gonna want their own personal C-3PO, R2-D2,” Musk said.TSLA Price Action: Tesla shares closed Tuesday up 3.07% at $489.88, according to Benzinga Pro. Tesla is currently positioned strongly above its key moving averages, indicating bullish momentum. The stock is trading 13.7% above its 20-day SMA, 12.4% above its 50-day SMA, and a notable 22.6% above its 100-day SMA, which suggests a solid upward trend.Read Next:<ul><li>Elon’s Big Bet On Bots Has Tesla Stock Flying — Profits Still On The Ground</li></ul>Image: Shutterstock.com

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Tesla shares hit all-time highs, driven by optimism around its autonomous, robotics, and AI ambitions. CEO Elon Musk confirmed testing of robotaxis without occupants. Analysts predict Tesla's market cap could reach $2-3 trillion by 2026. The stock closed at $489.88, up 3.07%, showing strong bullish momentum above key moving averages. Investors view Tesla as a software and AI powerhouse, with potential for recurring mobility revenue.

- Tesla Inc shares reached new all-time highs, driven by optimism surrounding the company's autonomous vehicle ambitions.  
- CEO Elon Musk confirmed the testing of robotaxis in Austin, with future expectations set on the Cybercab launch in 2026 and significant revenue potential from software, robotics, and AI.  
- Analysts predict a potential market cap of $2 trillion by 2026, with an immediate bullish trend as shares close up 3.07% at $489.88, well above key moving averages.

Tesla Stock Just Closed At All-Time Highs: What's Driving The Breakout?