Tesla's Meteoric Stock Rise: Musk Balances Core and Future Innovations

Tesla's stock surged by nearly 12% after CEO Elon Musk forecasted strong car sales growth, reassuring investors of the company's commitment to expanding EV sales. Despite focusing on AI and robotics, Musk pledged to enhance core automotive operations, calming investor concerns regarding new ventures like robotaxis.

Tesla's stock soared close to 12% in pre-market trading on Thursday. The leap followed an optimistic forecast of car sales growth by CEO Elon Musk, addressing investor worries about his commitment to the core business of electric vehicles.

This surge could add roughly $80 billion to the company's market capitalization, compensating for recent setbacks attributed to Musk's distractions with new projects like the robotaxi. While Musk is pivoting Tesla towards AI and robotics, he hasn't fully clarified his business strategy.

Despite previous concerns over Musk's focus on projects beyond cars, such as driverless taxis, his remarks about promising sales growth and efforts to reduce production costs were well-received. However, the unveiled Cybercab has yet to convince all investors of its viability.

(With inputs from agencies.)