Tesla’s stock price started to increase in early May after a busy few weeks with tariff changes, earnings reports and discussions about potential management changes. This upward movement in stock price was based on recent announcements surrounding the introduction of the long-awaited robotaxi service set for Austin, Texas in June.

After a low under $222 in early April, Tesla’s stock closed at $318.38 on Monday, May 12, having regained its trillion-dollar market cap.

What should you do as a result of the increase in Tesla’s stock price? Here’s what the experts have to say about investing in Tesla right now.

“Tesla’s recent surge is driven more by investor psychology than hard data,” said James Francis, an investing expert and CEO of Paradigm Asset Management. “Although the robotaxi announcement is exciting, it’s still just an announcement, nothing more.”

In other words, the current hype is a product of narrative speculation rather than proven adoption or revenue, since the launch hasn’t happened yet.

He added, “If the expectations on the robotaxi’s timeline, pricing or regulations are not met, the correction could be significant.”

While the recent news may be exciting for investors, how the launch goes and what revenue generates will play a part in whether investing in Tesla is a sound decision.

George Narinyan, an investing expert and the CEO of Value Sense, explained, “The recent Tesla stock movement follows a familiar pattern, surging on Elon Musk’s announcements and innovations like the robotaxi, despite ongoing competition from rivals.”

The experts are cautious about investing in Tesla, as this launch has yet to play out in real time.

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“The valuation of Tesla has always been predicated on the narrative that Elon Musk is a genius and that the future of the automobile industry is electric cars,” said Robert R. Johnson, Ph.D., CFA, CAIA, professor of finance at Heider College of Business, Creighton University.

“Even if we accept both of those premises, the valuation of Tesla is simply not justified,” he explained. “The narrative relies not only on the future of electric vehicles, but relies on the notion that Tesla will be the big winner in the EV sweepstakes.”

Johnson stressed that investing in Tesla isn’t worth the risk right now, even though the stock price has gone up recently. He also pointed out that Elon Musk made a strategic error by wading into political waters.