Tesla Inc. shares recovered some ground Wednesday after a rout in the previous session as cheaper Model 3 and Model Y versions disappointed many who hoped for entirely new cars or even more affordable prices.

Beyond some investors buying in the dip, there could be a couple of reasons for Wednesday’s turnaround.

Many on Wall Street believe that Tesla is now more about humanoid robots, autonomous driving and a 「robotaxi」 fleet than electric vehicles, whose sales would merely support a deeper foray into nascent and, they hope, very profitable opportunities around the corner.

To that end, the release of a Full Self-Driving update served to cement that bull view. Drivers engaging Full Self-Driving, Tesla’s suite of advanced driver-assistance systems meant for city driving, can expect 「overall improvements」 in smoothness and confidence, the company said in a post on X.com, which Chief Executive Elon Musk owns.

The product also has a new driver profile called 「sloth,」 which the company says will go at lower speeds and be more conservative with lane changes as compared to other profiles.

FSD requires supervision at all times, but the product has been under criticism for implying more capabilities than it has. That system and Autopilot, designed for highway driving, have been under scrutiny from safety regulators.

Analysts at Stifel earlier this week bumped their price target on Tesla to $483, from $440, thanks to the company making progress in FSD and its robotaxi network.

Tesla has said it is aiming to have Unsupervised FSD, or a system that can operate without a human driver, to be available in the U.S. by the end of the year.

That 「appears to be a stretch but seems more likely in the medium term,」 the Stifel analysts, led by Stephen Gengaro, said in the note. There are also expectation that the robotaxi fleet could grow rapidly in a short period of time, potentially materially impacting Tesla’s financials around the end of 2026, they said.

Tesla late Tuesday disappointed investors by unveiling cheaper trims of its most popular vehicles, the Model 3 sedan and the Model Y small SUV, by sacrificing some performance and interior touches.