March 27, 2025
As of March 27, 2025, Tesla Inc. (TSLA) has a market capitalization of approximately $875.09 billion, with a price-to-earnings (P/E) ratio of 137, and trading at approximately $278 per share. While this represents a 42% decline from the stock's all-time high closing price of $479.86 on December 17, 2024, it also represents a 100% gain from the stock's 52-week low of $138.80, reached on April 22, 2024.
In our view, in the past 12 months, between April 2024 and March 2025, Tesla's performance as a company has been less than desirable and has not met expectations. However, as we know, economic valuation is subjective and money is an artificial and infinitely renewable resource.
Financial markets have all the confidence in the world in Elon Musk's ability to make money. Therefore, regardless of any objective failures that would destroy the valuation of any normal company, Tesla continues to defy gravity like a Space X rocket. All it takes is for Space X's founder and de facto Vice President of the United States of Trump to make some promises about AI robotics and self-driving technology for the stock to rise again and again.
Below we take a look at significant news and events, along with the corresponding stock performance, for Tesla in the last 12 months. You will see the same pattern over and over again: poor performance, Chinese market reliance, AI robotic announcements, and high market expectations.
APRIL 2024
1. Workforce Reductions
Tesla announced layoffs affecting over 10% of its global workforce. CEO Elon Musk stated that these cuts were necessary to prepare the company for its "next phase of growth," emphasizing the importance of reorganizing the company structure to align with evolving business needs.
2. First Quarter Financial Results
Tesla reported its financial results for the first quarter of 2024 on April 23. The company produced approximately 387,000 vehicles during this period. Following the earnings release, Tesla's stock experienced a surge of about 10%, attributed to plans to introduce more affordable vehicle models in early 2025, aiming to address concerns about slowing growth.
3. Cybertruck Recall
On April 17, Tesla issued a recall for all 3,878 Cybertrucks sold up to that date. The recall addressed an issue where the accelerator pedal pad could dislodge and become trapped, potentially causing unintended acceleration. Tesla promptly initiated repairs to resolve this safety concern.
4. Legal Action in Wisconsin
Tesla filed a lawsuit against the state of Wisconsin, challenging a law that prohibited the company from opening manufacturer-owned dealerships. This legal battle became a focal point in the Wisconsin Supreme Court race, highlighting the intersection of corporate interests and judicial elections.
5. Full Self-Driving (FSD) Updates
In April, Tesla released FSD version 12.3.3, which transitioned the software from "beta" to "supervised" status. This update introduced vision-based Autopark for vehicles without ultrasonic sensors and marked a milestone with users having driven over 1 billion miles using FSD Beta.
6. Shift Toward Robotaxi Development
Reports emerged indicating that Tesla had canceled plans for a low-cost consumer vehicle, redirecting focus toward developing a robotaxi based on the same chassis. CEO Elon Musk announced plans to unveil the robotaxi on August 8, 2024, signaling a strategic pivot toward autonomous ride-hailing services.
Stock Performance
In April 2024, Tesla's stock (TSLA) exhibited notable volatility. The month commenced with a closing price of $175.22 on April 1 and concluded at $183.28 on April 30, marking an approximate 4.6% increase over the period.
Key Data Points:
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Monthly Low: The stock reached its lowest point on April 22, closing at $142.05.
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Monthly High: The highest closing price was $194.05 on April 29.
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52-Week Low: During April, Tesla hit a 52-week low of $138.80 on April 22.
MAY 2024
1. Full Self-Driving (FSD) Subscription Retention
Despite Tesla's efforts to promote its Full Self-Driving (FSD) feature, data from YipitData revealed that only 2% of the nearly 3,500 Tesla owners who tried FSD in April 2024 chose to maintain their subscriptions. This extremely low retention rate raised questions about the perceived value and performance of the FSD system among users.
2. Environmental Violations Lawsuit
A nonprofit organization filed a lawsuit against Tesla in the Northern California U.S. District Court, alleging violations of the Clean Air Act at its Fremont factory. The Bay Area Air Quality Management District reported that Tesla had received 119 notices for air pollution regulation violations since 2019, highlighting ongoing environmental compliance challenges for the company.
3. Model Y Long Range Rear-Wheel Drive Release
Tesla introduced the Long Range Rear-Wheel Drive (RWD) variant of the Model Y to the U.S. market. This model replaced the previously offered Standard Range RWD version, providing an extended driving range to meet consumer demand for longer-distance electric travel.
4. Optimus Robot Factory Demonstration
Tesla showcased its humanoid robot, Optimus, performing various tasks within a Tesla factory. This demonstration aimed to highlight advancements in robotics and automation, emphasizing Tesla's commitment to integrating artificial intelligence into its manufacturing processes.
5. Tesla Semi Truck Testing
Several major companies, including Walmart, Costco, Sysco, Martin Brower, and US Foods, began testing Tesla's Semi truck. These trials represented a significant step toward the adoption of electric trucks in commercial fleets, potentially reducing carbon emissions in the logistics sector.
These events in May 2024 reflect Tesla's ongoing efforts to innovate and expand its product offerings, while also addressing challenges related to product adoption and regulatory compliance.
Stock Performance:
In May 2024, Tesla's (TSLA) stock exhibited modest fluctuations, ultimately closing the month with a slight decline. The stock opened on May 1 at $182.00 and closed on May 31 at $178.08, marking a decrease of approximately 2.2% over the month. During this period, TSLA experienced a high of $185.86 on May 1 and a low of $167.75 on May 10.
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JUNE 2024
Significant News and Events
1. Annual Stockholder Meeting and Texas Relocation
On June 13, 2024, Tesla held its Annual Stockholder Meeting at its headquarters in Austin, Texas. During this event, shareholders voted on key proposals, including the ratification of CEO Elon Musk's 2018 Performance Award and the redomestication of Tesla's incorporation from Delaware to Texas. Both measures received overwhelming approval, officially making Tesla a Texas corporation.
2. More Cybertruck Recalls
Throughout June, Tesla faced challenges with its Cybertruck model. The National Highway Traffic Safety Administration (NHTSA) announced recalls to address issues such as loose trunk bed trim sails, which could detach and create road hazards, and windshield wiper motor failures that reduced visibility. These recalls aimed to rectify safety concerns and maintain vehicle reliability.
3. Decreasing Sales
Tesla's performance in the Chinese market showed mixed results. In June 2024, the company sold 71,007 vehicles wholesale, with 11,746 units exported and 59,261 units sold domestically. This represented a 7% increase in domestic sales compared to the previous month but a 20% decrease year-over-year, indicating fluctuating demand in one of Tesla's key markets.
4. Legal Challenges
During this period, Tesla shareholders filed lawsuits alleging that Elon Musk and the company's board diverted resources and talent to Musk's artificial intelligence venture, xAI, potentially breaching fiduciary duties. These legal actions highlighted concerns about corporate governance and the allocation of company resources.
5. Supercomputing Initiatives
In June 2024, Elon Musk detailed ongoing construction at Gigafactory Texas for a new computing cluster. This facility was planned to house a mix of Tesla's AI hardware and other technologies, with an initial thermal design power of 130 megawatts, aiming to exceed 500 megawatts over the following 18 months. This initiative underscored Tesla's commitment to advancing its computational capabilities to support autonomous driving and other AI-driven endeavors.
Stock Performance:
In June 2024, Tesla's (TSLA) stock demonstrated notable growth. The stock opened the month at $176.13 on June 6 and closed at $197.88 on June 28, marking an approximate 12.3% increase over the period. During this time, the stock experienced fluctuations, reaching a low of $169.80 on June 12 and a high of $203.20 on June 28. This upward trend reflected positive investor sentiment and market confidence in Tesla's performance during that month.
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JULY 2024
Significant News and Events
1. Financial Performance and Stock Activity
Q2 Profit Decline: Tesla reported a more than 40% drop in second-quarter profits compared to the previous year. This decline was attributed to increased competition in the electric vehicle market and challenges in maintaining production efficiency.
Stock Volatility: Following the earnings report, Tesla's stock experienced notable fluctuations. Initially, shares tumbled 12%, erasing nearly $100 billion in market value, as investors reacted to the disappointing profit margins and CEO Elon Musk's emphasis on future projects like humanoid robots and driverless taxis. Earlier in the month, however, Tesla's stock had reached its highest point in 2024, contributing to a $37 billion increase in Musk's net worth.
Executive Stock Sales: Tesla board members and executives sold off over $100 million worth of stock in July. These transactions, often following the exercise of stock options, resulted in a profit of just over $100 million, raising discussions about insider confidence and the company's future direction.
2. Chinese Ties
China Sales Performance: Tesla's operations in China showed resilience, with 74,117 vehicles sold wholesale in July 2024. This strong performance underscored the importance of the Chinese market to Tesla's global strategy.
3. Strategic Developments
Expansion in Texas: Tesla expanded its footprint in Texas by investing $1.5 million into a new 135,000-square-foot facility in Hutto. Additionally, the company leased a 180,000-square-foot industrial space in Taylor, strategically located near its Gigafactory headquarters in Austin. These moves highlighted Tesla's commitment to strengthening its presence in the region.
Stock Performance:
In July 2024, Tesla's stock (TSLA) demonstrated notable growth. The stock opened the month at $201.02 on July 1 and closed at $232.07 on July 31, marking a 15.4% increase over the month. The average closing price during this period was $240.62. The stock experienced fluctuations throughout the month, reaching a high of $271.00 on July 11 and a low of $200.85 on July 1. This upward trend in July contributed to Tesla's overall performance in 2024, where the stock closed the year at $403.84, representing a 62.52% annual increase.
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AUGUST 2024
Significant News and Events:
1. Cybertruck Reservation Changes
Tesla discontinued the option to reserve the least expensive version of the Cybertruck, previously priced at $61,000.
2. Tesla Semi Efficiency Testing
Logistics company NFI tested the Tesla Semi and reported an efficiency of 1.7 kWh per mile. This evaluation provided insights into the vehicle's performance in real-world operations.
3. Workplace Safety Incident
On August 1, 2024, electrician Victor Joe Gomez Sr. died by electrocution at Tesla's Austin Gigafactory. The Occupational Safety and Health Administration (OSHA) launched an investigation into the incident. In February 2025, Texas Congressman Greg Casar demanded the release of OSHA's findings, emphasizing the public's right to know about workplace safety practices at Tesla.
4. Legal Developments
In August 2024, U.S. District Judge Alvin Hellerstein dismissed a class-action lawsuit alleging that Elon Musk and Tesla participated in a pyramid scheme related to Dogecoin. The judge ruled that no reasonable investor could rely on Musk's tweets for securities fraud claims.
Stock Performance:
In August 2024, Tesla's stock (TSLA) experienced notable fluctuations. The stock opened the month at $227.69 on August 1 and closed at $214.11 on August 30, marking a decline of approximately 6% over the month.
During this period, TSLA's daily closing prices varied, with highs and lows reflecting market dynamics. For instance, on August 1, the stock had a high of $231.87 and a low of $214.33, closing at $216.86. Later in the month, on August 30, it reached a high of $214.57 and a low of $207.03, closing at $214.11.
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SEPTEMBER 2024
Significant News and Events:
1. Chinese Ties
China Market Growth: Tesla's sales of China-made electric vehicles (EVs) increased by 19.2% year-over-year in September. The company delivered over 72,000 EVs in China, marking a 66% rise compared to the same month in the previous year and achieving its best monthly performance for the year. This contributed to a 12% increase in Tesla's China-made EV sales for the third quarter of 2024.
2. Cybertruck Recalls: Tesla issued a safety recall for approximately 27,000 Cybertruck vehicles due to a rearview camera delay that could increase the risk of collisions. The affected vehicles were manufactured between November 13, 2023, and September 14, 2024. Tesla addressed the issue through a free software update.
3. Software and Technology Updates: Tesla announced plans to release its Full Self-Drving (FSD) system for the Cybertruck later in September, with a significant version 13 update scheduled for October. The company also announced its aim to launch FSD in Europe and China by the first quarter of 2025, pending regulatory approval.
4. Vehicle Software Enhancements: Tesla introduced the "Actually Smart Summon" (ASS) feature to its Model S, Model X, Model 3, and Model Y vehicles. This enhancement allowed FSD-enabled vehicles to navigate parking lots more proficiently without a driver, marking a significant improvement in Tesla's autonomous driving capabilities.
Stock Performance:
In September 2024, Tesla's (TSLA) stock demonstrated notable growth. The stock opened the month at $208.63 on September 1 and closed at $261.63 on September 30, marking a 21.5% increase over the month. Throughout September, TSLA experienced fluctuations, with daily closing prices ranging from a low of $210.60 on September 3 to the month's high of $261.63 on September 30. This upward trend in September 2024 contributed to Tesla's overall positive performance for the year, with the stock closing at $403.84 by the end of 2024, representing a 62.52% annual increase.
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OCTOBER 2024
Significant News and Events:
1. Cybercab Robotaxi
On October 10, CEO Elon Musk introduced the Tesla Cybercab, a fully autonomous two-seater vehicle devoid of a steering wheel or pedals. Priced under $30,000, production is slated to begin in 2026. The Cybercab aims to revolutionize urban transportation by reducing parking space requirements and lowering per-mile costs.
2. Robovan
Alongside the Cybercab, Musk unveiled the Robovan, an autonomous electric van capable of transporting up to 20 passengers. Designed for urban environments, the Robovan is intended to operate within Tesla's envisioned autonomous ride-hailing service, the Tesla Network.
3. Third-Quarter Financial Performance
Tesla reported its Q3 2024 financial results on October 23, revealing an 8% year-over-year revenue increase to $25.2 billion and a 54% rise in operating income to $2.7 billion. These figures surpassed analyst expectations and led to a significant stock surge. Following the positive earnings report, Tesla's stock experienced its most substantial single-day gain since 2013, adding nearly $150 billion to its market value. CEO Elon Musk projected a 20% to 30% increase in vehicle sales for 2025, further bolstering investor confidence.
4. Regulatory Scrutiny of Full Self-Driving Technology
Despite these advancements, Tesla faced regulatory challenges as the National Highway Traffic Safety Administration (NHTSA) initiated a preliminary investigation into the company's Full Self-Driving (FSD) technology. The probe, encompassing over 2 million vehicles, was launched in response to reports of collisions involving FSD-equipped Teslas.
October 2024 was a pivotal month for Tesla, marked by ambitious product announcements, strong financial performance, and increased regulatory attention.
Stock Performance:
TSLA opened the month at $262.67 on October 1 and closed at $249.85 on October 31, marking a decline of approximately 4.9% over the month. The stock reached a high of $273.54 on October 28 and a low of $213.65 on October 23.
NOVEMBER 2024
Significant News and Events:
1.
Trump Jump: Tesla's market value increased by 38.1% to $1.1 trillion in November, driven by expectations that the company would benefit from CEO Elon Musk's close ties with President-elect Donald Trump. Reports indicated that Trump's transition team planned to establish federal regulations for autonomous vehicles, potentially streamlining Tesla's Full Self-Driving (FSD) testing and deployment.2. Political Developments: President-elect Donald Trump appointed Elon Musk to lead the newly created Department of Government Efficiency (DOGE), aiming to reduce bureaucracy and restructure federal agencies. This appointment led to a 2.8% rise in Tesla's stock during premarket trading.
3. Product and Technology Highlights
Cybertruck Deliveries Begin: Tesla commenced deliveries of the highly anticipated Cybertruck, marking a significant milestone for the company. The initial rollout focused on higher-end variants, with the base model's production slated for 2025.
Tesla Network Testing: Tesla revealed that it had been internally testing a ride-hailing app since early 2024, using driver-supervised Model 3 and Model Y vehicles in California. This initiative is part of the broader Tesla Network, aiming to offer autonomous ride-hailing services.
4. Public Relations and Media
Kim Kardashian's Tesla Robot Feature: Kim Kardashian showcased Tesla's humanoid robot, Optimus, on her social media, referring to it as her "new friend." She interacted with the robot in various activities, highlighting Tesla's advancements in robotics. Following the social media posts, Kardashian's representative denied claims that she was paid for the photo shoot with Tesla's Optimus robot, emphasizing that no financial transaction was involved.
5. Safety Incidents
Cybertruck Crash in Mexico: A severe accident involving a Tesla Cybertruck occurred in Mexico, where the vehicle collided with a statue and flipped over. All four passengers survived, underscoring both the vehicle's inherent hazards and safety features.
Stock Performance:
In November 2024, Tesla's stock (TSLA) experienced a significant surge, marking a 36.9% increase over the month. The stock closed at $345.16 on November 29, 2024. The re-election of President Donald Trump in early November was associated with a notable rise in Tesla's stock, as investors speculated on potential policy impacts favorable to the electric vehicle sector. The stock's performance in November contributed significantly to Tesla's overall 63% gain in 2024, with the majority of this growth occurring in the fourth quarter.
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DECEMBER 2024
Significant News and Events:
1. Legal and Financial News
Musk's Compensation Package Rejected: On December 2, a Delaware judge upheld the prior decision to invalidate Elon Musk's $56 billion pay package, ruling that it was not properly approved and lacked fair disclosure to shareholders.
2. Safety Incidents
Fatal Crash in New York: On December 3, a Tesla vehicle crashed into a rock barrier in Pelham Manor, New York, resulting in a fire that killed both occupants.
3. Safety Recalls
Vehicle Recall Due to Tire Pressure Issue: On December 17, Tesla recalled almost 700,000 vehicles, including various Model 3, Model Y, and Cybertruck units, due to a tire pressure monitoring system malfunction that increased the risk of collisions.
Cybertruck Safety Issues: The Cybertruck faced multiple recalls and safety investigations, including concerns about its stainless-steel exterior and design potentially posing risks to pedestrians and other vehicles.
4. Operational Challenges
Executive Departure: Tesla's Director of Engineering for Autopilot Hardware, Zheng Gao, left the company to join Zoox, an Amazon-backed robotaxi competitor, marking another high-profile departure amid Tesla's strategic shifts towards autonomous vehicles.
Union Strikes in Sweden: Ongoing since October 2023, strikes by Swedish trade unions against Tesla continued, protesting the company's refusal to sign collective agreements. The labor actions expanded to include sympathy strikes from other unions across Nordic countries.
Autonomous Vehicle Discussions in Austin: Tesla engaged in early talks with Austin, Texas, authorities regarding the integration of its self-driving vehicle technology, aiming to establish safety expectations for autonomous vehicles in the city.
5. Product Developments
Tesla Network Testing: Tesla internally tested its autonomous ride-hailing service, the Tesla Network, with employees in California using driver-supervised Model 3 and Model Y vehicles, indicating progress towards a broader rollout.
Stock Performance:
In December 2024, Tesla's stock (TSLA) experienced significant volatility, reaching an all-time high before retreating by month's end. On December 17, 2024, TSLA achieved its highest closing price of $479.86. Tesla's market capitalization at the close of December 17, 2024 was approximately $1.543 trillion. Next day, on October 18, 2024, Tesla achieved its highest intraday price of $488.54. However, the stock declined afterward, closing at $403.84 on December 31, 2024. This fluctuation resulted in an approximate 15.8% decrease from the peak within the month. Despite this decline, TSLA concluded December with a 14.6% overall gain.
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JANUARY 2025
Significant News and Events:
1. Cybertruck Explosion in Las Vegas
On January 1, a Tesla Cybertruck exploded outside the Trump International Hotel in Las Vegas, resulting in the death of the vehicle's occupant and injuries to seven bystanders. Authorities identified the driver as Matthew Livelsberger, an active-duty U.S. Army Special Forces soldier. The explosion was attributed to fireworks and gas canisters inside the vehicle, and investigations were ongoing to determine the motive.
2. Cybertruck Safety Recalls
Tesla issued a recall affecting approximately 46,000 Cybertrucks produced in 2024 and 2025 due to a safety concern where the trim panel could detach, posing a road hazard. This marked the eighth recall for the Cybertruck since January 2024.
3. Revenue Shortfall
Tesla released its fourth-quarter and full-year 2024 financial results on January 29. The company reported a 2% increase in revenue to $25.7 billion, which fell short of analysts' expectations of $27.1 billion. Despite the revenue shortfall, CEO Elon Musk emphasized future initiatives, including the launch of a robotaxi service and the pilot production of the Optimus humanoid robot.
4. Sales Decline in Europe
Tesla experienced a significant decline in European sales, with a nearly 50% drop in January compared to the same period in the previous year. The company's market share in the region decreased from 1.8% to 1%. This decline was attributed to increased competition from manufacturers like Volkswagen and SAIC Motor, as well as controversies surrounding Elon Musk's political activities.
5. Product Development and Updates
- Chinese Ties. On January 10, Tesla unveiled a redesigned Model Y in China, featuring a full-width light bar for daytime running lights and taillights, a rear-seat touchscreen, and an extended range for the long-range version. The refresh retained the traditional turn signal stalk in response to customer feedback. Deliveries in China were scheduled to begin in March.
- FSD Updates. Tesla reported that customers had driven 3 billion miles using FSD (Supervised) by January 2025. The company also increased its artificial intelligence training compute capability by 400% in 2024, underscoring its commitment to advancing autonomous driving technologies.
- Robotaxi and Optimus Initiatives. Elon Musk announced plans to commence Tesla's robotaxi business and initiate pilot production of the Optimus humanoid robot in 2025. The robotaxi service aimed to deploy "unsupervised" full-self-driving cars as a paid service in Austin, Texas, by June. These initiatives were highlighted as crucial to Tesla's future growth.
6. Attacks on Tesla Vehicles. Coordinated attacks on Tesla electric vehicles in at least nine U.S. states. Incidents included arson, gunfire, and vandalism, with perpetrators expressing grievances against perceived political opponents. A joint intelligence bulletin from the Department of Homeland Security and FBI highlighted these concerns.
7. Elimination of Federal Subsidies. President Trump initiated actions to eliminate federal subsidies and incentives for electric vehicles (EVs), including the $7,500 tax credit for new EV purchases. In January 2025, he signed an executive order titled "Unleashing American Energy," which aims to dismantle these incentives and related policies. These policy changes have significant implications for the EV market and EV automakers like Tesla.
Stock Performance:
In January 2025, Tesla's (TSLA) stock demonstrated modest growth, closing at $404.60 on January 31, marking a 3.7% increase for the month. The monthly gain reflected investor optimism amid the company's ongoing developments.
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FEBRUARY 2025
Significant News and Events:
1. European Sales Decline
Tesla sold fewer than 16,000 vehicles across 25 European countries, marking a 44% decrease compared to February 2024. This resulted in Tesla's lowest market share in five years at 9.6%. In contrast, competitors such as Volkswagen and BMW saw substantial increases in their electric vehicle (EV) sales during the same period.
2. Cybertruck Safety Recalls
Over 46,000 Cybertrucks produced between November 2023 and February 2025 were recalled due to a defect where an exterior panel could detach while driving, posing a hazard to other motorists.
3. Government Contracts Controversy
The U.S. State Department's 2025 procurement forecast included a $400 million allocation for "Armored Tesla (Production Units)." This was later revised to "Armored Electric Vehicles," removing the specific reference to Tesla. CEO Elon Musk stated he was unaware of any such contract.
4. Public Protests and Political Backlash
- Tesla faced public protests linked to Elon Musk's political activities. The "Tesla Takedown" movement gained momentum, with demonstrations at Tesla showrooms across the United States. Protesters opposed Musk's involvement in President Trump's administration and called for boycotts of Tesla products.
Stock Performance:
In February 2025, Tesla's (TSLA) stock experienced a significant decline, falling by approximately 28% in the short month. The stock was as $359.10 on February 18 and as low as $273.60 on February 28. The stock was down 18% for the year, marking it as one of the weakest performers among major tech stocks. Overall, February 2025 was a challenging month for Tesla's stock, marked by significant declines and influenced by technical factors and investor concerns.
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MARCH 2025
Significant News and Events:
1. Stock Performance and Financial Outlook
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Trade-Ins Surge: Used Tesla listings surged by 33% in 2025, increasing from 8,500 to 11,515 by mid-March. Despite this rise, Tesla's share of the used EV market only gained one percentage point to 40%, suggesting the listings increase may be partially due to higher availability.
2. Cybertruck Recalls
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Cybertruck Recall: Tesla recalled over 46,000 Cybertrucks from the 2024 and 2025 models due to a defect where an exterior panel, the cant rail, could detach and create road hazards. This recall is the eighth for the Cybertruck since January 2024.
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FSD Trial Halt in China: Tesla paused a limited-time free trial of its Full Self-Driving (FSD) feature in China, pending regulatory approval. The trial, initially scheduled between March 17 and April 16, was temporarily halted, with Tesla's customer support promising to expedite the process. citeturn0news16
4 Political and Social Backlash
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Protests and Vandalism: Tesla's dealerships and charging stations have been targets of vandalism and arson amid growing protests against Elon Musk's political involvement. Incidents include the discovery of incendiary devices at a Tesla showroom in Austin, Texas, and attacks on Tesla properties in multiple states.
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Legislative Actions: New York lawmakers introduced a bill to revoke Tesla’s permits for its five direct sales locations in the state. This move is in response to Musk’s close ties with President Trump and his role in reducing the federal workforce, leading to backlash in Democratic states.
5. Trade Policies and Market Dynamics
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Auto Tariffs: President Trump's imposition of a 25% tariff on all foreign-made cars and auto parts is expected to significantly impact Detroit's Big Three automakers (GM, Ford, and Stellantis). Conversely, Tesla and Rivian, which manufacture all their US-sold electric vehicles domestically, are poised to benefit from the new tariffs.
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European Sales Decline: Tesla's European sales dropped 49% year-on-year in January and February, despite rising registrations of electric vehicles (EVs). New Tesla registrations in the European Union fell to 19,046 in the first two months of the year from at least 37,000 in the same period of 2024.
6. Product Developments
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Model Y Update: Tesla launched a redesigned version of the Model Y in China in January, with deliveries beginning in March. The updated Model Y features a full-width light bar as its daytime running lights and tail light, as well as a touchscreen for passengers in the rear seat.
7. Corporate Communications
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Employee Assurance: Elon Musk urged Tesla employees to hold onto their stock amidst a significant surge in vehicle trade-ins and dealership vandalism. He emphasized the importance of staying optimistic and highlighted the company's long-term goals, including fully autonomous driving software.
Stock Performance:
As of March 27, 2025, TSLA is trading at approximately $273.13. The stock has seen a range of intraday highs and lows, reflecting the market's response to ongoing events.
March 3, 2025: TSLA opened at $300.34, and closed at $284.65.
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March 10, 2025: The stock experienced a significant drop, opening at $252.54 and closing at $222.15, marking a 15.43% decline from the previous close.
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March 24, 2025: TSLA rebounded, opening at $258.08 and closing at $278.39, an 11.93% increase from the prior close.
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March 26, 2025: The stock declined by 5.58%, closing at $272.06.
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March 27, 2025: TSLA showed a modest uptick, closing at $273.13.
Key Influencing Factors:
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Trade Policies: The implementation of a 25% tariff on foreign-made cars and auto parts by President Trump was anticipated to impact the automotive industry. While Tesla manufactures its U.S.-sold vehicles domestically, CEO Elon Musk expressed concerns about increased costs due to parts sourced internationally.
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International Relations: In retaliation to U.S. tariffs, Canada suspended $43 million in EV rebates for Tesla and excluded the company from future programs. This action contributed to a 5.6% drop in Tesla's stock on March 26.
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Market Sentiment: Tesla's stock experienced a 27% rise over five sessions leading up to March 26, marking its best stretch since the November election. However, the stock remains below its 50-day moving average, reflecting ongoing volatility.
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Political Associations: Elon Musk's involvement with the Trump administration and the Department of Government Downsizing and Efficiency (DOGE) has led to brand perception challenges. This association has contributed to a 31% year-to-date decline in Tesla's stock and decreased resale values.
Additional Observations and Trends
Throughout this period, Tesla faced a mix of operational challenges and market dynamics:
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Product Recalls: Multiple recalls, particularly involving the Cybertruck, raised concerns about quality control and vehicle safety.
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Financial Performance: Tesla's earnings reports often fell short of analyst expectations, with declining profit margins and revenues impacted by increased competition and production issues.
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Strategic Announcements: The company fought bad news with good promises. Despite challenges, Elon Musk (world's richest man, founder of Space X, and de facto VP of the US of Trump) has a huge fan base in the financial world. All it takes is for Elon to say a few words and make bold promises for the stock to rise.
Political Connections: Elon Musk's political engagements as the de facto Vice President of the United States and main campaign kickback Super PAC financier of King Trump, and his alleged or perceived neo-nazi beliefs have led to mixed brand perception challenges for Tesla. The stock is down from its peak, but 100% up in just 12 months.
These developments highlight Tesla's dynamic landscape, marked by opportunities alongside operational and reputational challenges.
What will happen with Tesla and its stock in the future? No one knows because the future has not been created yet. There are three possibilities: up, same, down (USD). Tesla stock can go down, stay the same, or go up in price.
If we have to bet, the TSLA stock will continue its ups and downs until the market can figure out two things: whether King Trump will succeed in his upcoming coup; and whether Tesla can deliver on its promises for fully autonomous vehicles and smart robotic assistants.
Tesla sells itself as the company that will bring the science fiction in the movies Transformers and I-Robot into reality. Tesla's excessive valuation (137 times earnings) is tied to the bet of whether or not Elon Musk can deliver on that promise. The reality, however, is that even if Musk and Tesla succeed, China will steal the intellectual property and immediately replicate and improve the technology at a fraction of the cost. It will all be the same. Until China is not completely defeated it will continue defeating Elon's neo-nazi tech dreams.
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Now you know it.
www.creatix.one
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