What Happened?
Shares of electric vehicle pioneer Tesla (NASDAQ: TSLA) jumped 2.8% in the afternoon session after the announcement that the Strait of Hormuz is "completely open," provided massive relief.
For manufacturers, lower energy prices reduce the heavy industrial costs associated with steel production and assembly plant operations. This allows carmakers to preserve margins even as they navigate the transition to newer technologies. The reopening of the Strait of Hormuz is also significant for global logistics, as it ensures a smoother flow of automotive parts and semiconductors through the region.
After the initial pop the shares cooled down to $400.66, up 3.2% from previous close.
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What Is The Market Telling Us
Tesla’s shares are very volatile and have had 23 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 7.4% on the news that CEO Elon Musk announced a major breakthrough for the company’s future technology.
Musk shared that Tesla successfully finished the design phase for its new AI5 chip. This "tape-out" milestone means the high-powered chip is now ready to be manufactured. Investors are excited because this hardware will power Tesla’s next generation of self-driving cars and its Optimus robots. This update signals that the company is moving quickly toward its goals in artificial intelligence and robotics. The tech sector also saw particularly strong performance, driven by excitement around AI.
Underscoring this trend, reports emerged that Uber is investing over $10 billion to acquire a fleet of autonomous vehicles. This move signals a major strategic shift for the company and highlights the massive capital flowing into AI-driven technologies, boosting confidence across the industry and affecting related players like Alphabet's Waymo and Tesla.
Tesla is down 8.5% since the beginning of the year, and at $400.66 per share, it is trading 18.2% below its 52-week high of $489.88 from December 2025. Despite the year-to-date decline, investors who bought $1,000 worth of Tesla’s shares 5 years ago would now be looking at an investment worth $1,682.
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