Tesla Stock Experiences 5% Increase After-Hours Driven by Future Vehicle Announcements and FSD Developments

Tesla Inc (NASDAQ: TSLA) saw its stock rise by as much as 5% after hours following the company's announcements about new, more affordable vehicle models planned for release in the first half of 2025. This optimism also stems from fresh commitments related to the rollout of its autonomous driving technology and plans to license the full self-driving (FSD) driver assistance system to other automakers.

Licensing FSD: During a conference, CEO Elon Musk indicated that discussions are underway with other car manufacturers for the potential licensing of Tesla's FSD technology. However, Musk emphasized that the company is focusing on partnerships that promise high deployment volumes.

Musk also assured that sharing this technology with other manufacturers would not overburden Tesla's engineering team. Instead, the focus will remain on making the technology fully autonomous. He noted that interest from competitors is likely to increase once the FSD technology supports completely driverless operation.

Autonomous Ride-Hailing Testing in Texas: Musk further revealed that Tesla plans to initiate testing of its autonomous ride-hailing service in Texas starting in June, using vehicles that are equipped with FSD. However, past timelines Musk provided for Tesla products have not always been met; he previously asserted that Tesla would roll out operational robotaxis by 2020, a promise that did not materialize.

Additionally, Musk expressed his hope that unsupervised FSD could be launched in California by the end of this year, with aspirations to expand into other areas soon. Currently, the FSD system necessitates driver supervision.

Why It Matters: Despite reporting lower-than-expected fourth-quarter revenue, earnings per share, and gross profit margin, Tesla's stock performance improved significantly after it announced plans for production of new models. Investors were also encouraged by Musk's updates on enhancements to FSD this year, which contributed to the stock’s after-hours rally.

Since Donald Trump's election in November, Tesla’s stock has been on an upward trajectory. Musk has developed a close relationship with Trump, supporting his election campaign. As of Wednesday's close, Tesla's stock has more than doubled, reaching $389.10, according to data from Benzinga Pro.

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Tesla, Stock, FSD