Tesla's (NASDAQ: TSLA) stock is undoubtedly risky, but then again, so are many other stocks on the market, and there's no such thing as a reward without risk. The question is whether the risk/reward calculation makes sense for Tesla stock.

Tesla's first-quarter earnings report itself was a disaster, but Musk gave investors some much-needed good news on the conference call.

The stock got a fresh boost on Friday as the US Department of Transportation announced looser rules for self-driving cars.