/ December 17, 2025 Tesla shares have surged to unprecedented levels, propelled by a significant milestone in its self-driving technology program. The stock reached a new all-time high near $490, marking its first record since December 2024. This rally has elevated the electric vehicle maker’s market capitalization to approximately $1.63 trillion, moving it into seventh place among the most valuable U.S. companies and displacing Broadcom. The Catalyst: Unsupervised Testing in Texas The primary driver behind the market’s enthusiasm is the company’s confirmation that it is testing fully autonomous vehicles on public roads in Texas without a human safety driver behind the wheel. This advancement, targeting what is classified as Level 4 or Level 5 autonomy, represents a critical step toward deploying a planned fleet of robotaxis. Market experts are increasingly evaluating Tesla not merely on vehicle deliveries but on the scaling potential of its Autopilot software. Investment firm Wedbush has projected a $3 trillion valuation by the end of 2026, contingent on the successful commercialization of this technology. In pre-market trading, the stock advanced an additional 3.07%, decisively breaking through the psychologically significant $490 barrier. It closed at $489.88. Regulatory Headwinds Emerge in California Despite the breakthrough, Tesla faces a serious regulatory challenge in California, its largest U.S. market. State authorities are threatening a 30-day sales halt, alleging the company has marketed the terms “Autopilot” and “Full Self-Driving” in a misleading manner. Regulators contend the systems do not meet the stringent requirements for true Level 3 autonomous driving.