On Wednesday, investors Gary Black of The Future Fund LLC and Gene Munster, managing partner at Deepwater Asset Management, shared their views on Elon Musk-led Tesla Inc.‘s (NASDAQ:TSLA) recent stock rally.
Gary Black Shares His View
The analysts took to the social media platform X to express their views. Black, in a post, shared screenshots of a Barron’s article by Al Root, outlining three reasons for the stock rally.
“The Mystery Behind TSLA's Sudden Stock Rise,” Black said. The article listed reasons like Musk sharing a picture of Tesla’s AI5 chip and sharing that the AI4 chip was capable of achieving better FSD performance.
The article also listed Black’s comments about investors looking forward to the end of the Iran war, as well as the SEC’s proposed easing of restrictions for day trading, potentially changing a rule that restricted traders with less than $25,000 in margin accounts from making more than four day trades within five business days.
Notably, Tesla stock was seen trending overnight as analyst Itay Michaeli of TD Cowen maintained a bullish outlook, adjusting the price target to $490.
Gene Munster Says AI5 Is The Reason Behind Rally
Munster, on the other hand, shared that 80% of the stock’s rally was because of “Elon's nocturnal post on X announcing the tape out for Hardware 5 is complete,” he said, adding that a 5x improvement would help enhance Full Self-Driving and Robotaxis.
“My best guess is AI5 comes out in the middle of next year,” Munster said. He also attributed 20% of the reason behind the rally to Nasdaq moving up, as well as an upgrade for Tesla by UBS analyst Joseph Spak, who outlined that Tesla could reach 2 million annual deliveries by 2030.
The post in question was shared by Musk on Wednesday, where he showcased what Tesla’s latest AI5 self-driving chip looks like. “Congrats to the @Tesla_AI chip design team on taping out AI5! AI6, Dojo3 & other exciting chips in work,” the billionaire said.
Cathie Wood Buys TSLA
While Tesla has been a volatile stock recently, investor Cathie Wood and her firm Ark Invest doubled down on the stock, purchasing over 33,210 shares via its ARK Innovation ETF (BATS:ARKK), a trade that was valued at over $11.4 million. The investor has remained bullish on the EV giant, despite concerns about its core auto business, which saw a 50,000+ inventory surplus in the first quarter of 2026.
According to Benzinga Edge Rankings, Tesla offers satisfactory Growth and Momentum, but fails to provide a favorable price trend in the short, medium, and long term.
Price Action: TSLA surged 7.62% to $391.95 at market close on Wednesday, further surging 0.41% to $393.57 during the after-hours trading session.
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