How Tesla Stock Gained 60%
Tesla (TSLA) stock skyrocketed 57%, fueled by a striking surge in its P/E multiple—even as revenue slipped and margins shrank. Despite whispers of delivery woes, margin pressure, and stiffening competition, investors are betting big. What’s really driving this rally? Let’s dive deeper.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 4282025 | 1232026 | Change | |
|---|---|---|---|
| Stock Price ($) | 285.9 | 449.1 | 57.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 95,724.0 | 95,633.0 | -0.1% |
| Net Income Margin (%) | 6.4% | 5.3% | -16.8% |
| P/E Multiple | 150.6 | 285.3 | 89.4% |
| Shares Outstanding (Mil) | 3,218.0 | 3,227.0 | -0.3% |
| Cumulative Contribution | 57.1% |
So what is happening here? The stock surged 57%, driven by an 89% jump in P/E multiple, despite a slight 0.1% dip in revenue and a 17% drop in net margin. Let’s explore what’s behind these shifts.
Here Is Why Tesla Stock Moved
- Weak Q4 Deliveries: Q4 2025 vehicle deliveries declined 15.6% YoY, falling below analyst consensus.
- Margin Contraction: Q3 2025 operating margin contracted to 5.8%, and Q4 estimates show further decline.
- Increased Competition: BYD surpassed Tesla in 2025 global EV sales; market share loss in Europe.
- Cybertruck Sales Drop: Cybertruck sales fell 48% in 2025; lost best-selling electric pickup title.
- FSD/Robotaxi Delays: Unsupervised robotaxi launch delayed; Optimus production timelines postponed.
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.