What Happened? Shares of electric vehicle pioneer Tesla (NASDAQ:TSLA) jumped 3.9% in the afternoon session after CEO Elon Musk backed a claim that the company could reach a staggering $20 trillion valuation.

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 declined 1.74% for week, two days after posting lower profits for a third straight quarter amid increased competition and loss of 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.

Elon Musk warned of difficult times ahead for Tesla Inc. following one of the carmaker’s worst stretches since it first started producing electric sedans over a dozen years ago.