Analysts highlighted strong investor enthusiasm for Tesla’s robo-taxi strategy, driving significant stock momentum. Dan Ives of Wedbush raised the possibility of a future tie-in with SpaceX, fueling additional excitement and uncertainty over whether the two companies could merge operations.

After releasing quarterly results, Tesla’s stock showed limited upside and failed to regain early gains, leading JP Morgan to project a potential 60% decline in its share price. Market participants noted a lackluster tape action and expressed growing concerns over near-term valuation pressure.

Traders are reallocating capital from Tesla into high-activity Nasdaq names such as Intel and AMD, following a 16-day rally in the index. Broader market enthusiasm has also emerged in areas like nuclear energy and short-squeeze targets, while software and AI-related stocks have lagged behind.