Austin, September 27, 2025 – Wall Street is sending a clear signal: Tesla (NASDAQ: TSLA) is no longer just a car company. Major investment firms, including Vanguard, State Street, and BlackRock, were actively increasing their Tesla holdings as of filings covering the period ending September 30, 2025, according to data from Fintel.io. This surge in institutional investment suggests a growing belief in Tesla’s future, particularly its ambitious push into artificial intelligence and autonomous driving.
AI Fuels Investor Confidence in Tesla
The electric vehicle maker is rapidly evolving into a tech powerhouse, attracting significant capital.
- Institutional ownership of Tesla stock has been steadily rising since the end of 2022.
- CEO Elon Musk personally purchased approximately $1 billion worth of Tesla shares in September.
- Tesla has begun offering fully unsupervised robotaxi rides in Austin, Texas.
- The company is transitioning to a subscription-based model for its Full Self-Driving (FSD) feature.
- Analysts predict Tesla’s earnings per share will nearly double over the next two years.
Even Tesla CEO Elon Musk appears to be betting big on the company’s future, purchasing roughly $1 billion of Tesla stock in September at prices ranging from $372 to $396 per share. This timing coincides with key advancements in Tesla’s robotaxi service, signaling confidence in the technology’s potential.
Tesla has been quietly operating a small fleet of robotaxis in Austin and San Francisco since mid-2024. Initially, these vehicles included a human safety driver ready to intervene if necessary. However, Tesla recently began offering completely unsupervised rides in Austin, a move indicating increased confidence in its self-driving capabilities.
Could Tesla’s robotaxis be safer than human drivers? Digital insurer Lemonade recently announced plans to lower insurance rates for Tesla owners, citing data that suggests Tesla’s Full Self-Driving (FSD) feature reduces accident rates. This development could pave the way for broader regulatory approval and expansion of Tesla’s robotaxi fleet in 2026.
Tesla’s shift to a recurring revenue model is also attracting investor attention. Starting February 14, the FSD add-on will be available exclusively through a monthly subscription, with plans to increase fees as the technology improves. This strategy emphasizes high-margin services and sustainable growth.
Wall Street analysts anticipate that recurring revenue from subscriptions and ride fees will significantly boost Tesla’s profitability. The consensus estimate projects nearly a doubling of Tesla’s earnings per share over the next two years, providing further justification for the recent investment activity by institutional investors and Elon Musk.
