Why Shares of Tesla Are Soaring Today

Key Points

• There is no company-specific reason behind the move today.

• In fact, I see more bad news out there than good news for Tesla today.

• These 10 stocks could mint the next wave of millionaires ›

Shares of Tesla (NASDAQ: TSLA) traded roughly 5.2% higher, as of 1 p.m. ET today. There is no obvious reason for the move, although as one of the largest stocks in the market, Tesla appears to be joining in the strong market rally today.

Market enthusiasm

Federal Reserve Chair Jerome Powell ignited a furious rally in the stock market after he hinted about a potential interest rate cut at the Fed's upcoming meeting in September, during a speech made at the Fed's 2025 Jackson Hole Economic Policy Symposium this morning. Lower rates are often viewed as a positive catalyst for stocks.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

Otherwise, I don't see any significant good news regarding Tesla today. In fact, I see more negative news. Yesterday, media outlets reported that the National Highway Traffic Safety Administration (NHTSA) is investigating Tesla over the way the company reports accidents with its vehicles. The NHTSA said on its website they had "identified numerous incident reports" regarding Tesla crashes, which "occurred several months or more before the dates of the reports [to NHTSA]."

Tesla said the issue has to do with the way it was collecting data, and that issue has now been corrected. Still, the investigation comes at a bad time, as Tesla ramps up its autonomous robotaxi fleet, and tries to prove that its full self-driving (FSD) technology not only works, but can scale into a massive new business for the company.

Still overvalued

Given that Tesla seems to be moving in lockstep with the market today, I still view the stock as overvalued, while it trades at close to 200 times forward earnings. Investors, in my view, are baking too much success into future initiatives like robotaxis and humanoid robots that have yet to fully play out, which therefore leaves the stock vulnerable to pullbacks.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $453,799!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $42,743!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $650,499!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of August 18, 2025

Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.