Tesla shares jump 8.5% on higher delivery forecast

Tesla's stock surged on Monday, rising 8.5% to close at $411.84, buoyed by a combination of strong delivery forecasts, a broader technology sector rally, and continued investor optimism around the company's autonomous driving and artificial intelligence initiatives.

The rally was supported by an upgraded second-quarter delivery forecast from Morgan Stanley, which now expects Tesla to deliver 413,000 vehicles. This figure exceeds the Wall Street consensus of roughly 406,000 to 409,000 vehicles and is driven by a significant recovery in key markets. Preliminary data shows Tesla registrations in Europe jumped 107.9% year-over-year in June, while domestic sales in China surged 82% from April.

Investor focus remains intensely fixed on Tesla's Full Self-Driving (FSD) software and its broader autonomy ambitions. Analysts estimate approximately 77% of Tesla's market valuation is tied to the successful deployment of its self-driving technology. Recent developments include the expansion of its unsupervised robotaxi service to the entire Austin, Texas, metro area and regulatory approval for FSD in the Netherlands. The company also announced it is rolling out updated FSD hardware for owners...