What Is Happening With Tesla Stock?
Despite slipping revenue and tighter margins, Tesla (TSLA)’s stock soared 63%, fueled by a jaw-dropping 130% spike in its P/E multiple. Missed forecasts and market headwinds sparked volatility, but record deliveries and a bold AI pivot have investors rethinking the future. Let’s dive into what’s really driving this surge.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 3062025 | 12012025 | Change | |
|---|---|---|---|
| Stock Price ($) | 263.4 | 430.1 | 63.3% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 97,690.0 | 95,633.0 | -2.1% |
| Net Income Margin (%) | 7.3% | 5.3% | -27.2% |
| P/E Multiple | 118.7 | 273.3 | 130.3% |
| Shares Outstanding (Mil) | 3,212.0 | 3,227.0 | -0.5% |
| Cumulative Contribution | 63.3% |
So what is happening here? The stock price jumped 63%, driven by a huge 130% surge in P/E multiple, despite revenue dipping 2.1% and net margin shrinking 27%. Let’s explore what’s behind these shifts.
Here Is Why Tesla Stock Moved
- Q1 2025 Missed Forecast: Revenue fell 9% YoY and deliveries dropped 13%, due to Model Y changeovers.
- Q2 2025 Mixed Performance: Deliveries of 384,122 vehicles beat estimates, but revenue fell 11% YoY. Robotaxi plans gained interest.
- Q3 2025 Record Deliveries: 497,099 deliveries, a record, partly due to buyers rushing before EV tax credit expired.
- EV Market Headwinds: Slowing global EV demand, increased competition, and price cuts impacted margins.
- Robotaxi & AI Focus: Investor optimism grew for autonomous driving, Cybercab, and Optimus robot development.
Our Current Assesment Of TSLA Stock
Opinion: We currently find TSLA stock unattractive. Why so? Have a look at the full story. Read Buy or Sell TSLA Stock to see what drives our current opinion.
Risk: To get a sense of TSLA’s risk, check out its drops during major market shocks. It fell about 54% in the 2018 correction, 61% during the Covid crash, and nearly 74% in the inflation shock. These aren’t minor dips. Even with strong growth and buzz, TSLA can take serious hits when markets turn. It shows that no matter the positives, big sell-offs can hit even popular names hard.
TSLA stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.