Tesla's valuation gains today follow a bigger sell-off in yesterday's trading that was spurred by disappointing second-quarter results and comments from management suggesting that performance headwinds could continue in the near term. The company's share price has seen some big swings in 2025, and is down roughly 21% year to date with today's pop.

Tesla stock rose early Friday, bouncing a little from its large post-earnings drop. Thursday’s dip came after CEO Elon Musk warned on Tesla’s earnings conference call that “rough quarters” could lie ahead.

Tesla's shares price declined 1.74% for the week on Friday, two days after posting declining profits for a third straight quarter amid increased competition and a pending loss of federal tax credits.

Tesla shares sank Thursday after CEO Elon Musk said the company could face a “few rough quarters” as it transitions to a future focused less on selling cars and more on offering people rides in self-driving cars.

Musk said his automaker “probably could have a few rough quarters” ahead as federal electric vehicle credits expire soon.