Tesla, Inc. (TSLA)

In the past six months, Tesla's stock (TSLA) has experienced volatility. The company delivered strong Q3 2025 results, driven by consumers rushing to purchase vehicles before the expiration of a $7,500 U.S. EV tax credit. Analysts anticipated Q3 deliveries around 441,500 vehicles, with full-year 2025 deliveries projected at approximately 1.6 million, about 10% below the previous year. Despite the strong Q3, it was still about 6% lower than the 462,900 delivered in the same quarter last year. Elon Musk had cautioned in July 2025 that Tesla faced "a few rough quarters" as EV subsidies disappeared. The company's stock price was up nearly 14% for the year as of early October 2025, with a recent surge helping Elon Musk's net worth to breach $500 billion. A proposed shareholder vote in November 2025 on a new CEO award for Musk, potentially granting him about 12% of the company, is also a significant upcoming event.

Tesla's product and service demand exhibits seasonality, with the company generally performing better in terms of deliveries in the second half of the year. However, specific quarters can be influenced by external factors. For instance, Q3 2025 saw a rush in deliveries in the U.S. due to the impending expiration of federal EV tax credits, pulling forward demand. Conversely, Europe has shown weakness, with sales falling due to an aging product lineup and increased competition, particularly from Chinese brands. Q1 2025 experienced a sharp fall in deliveries, marking its lowest since 2022. Sales in China and the UK also saw year-over-year declines in early to mid-2025. Historically, Tesla shares have shown a tendency to underperform in late July.

Tesla, Inc. is an American multinational automotive and clean energy company headquartered in Austin, Texas, that designs, manufactures, and sells battery electric vehicles (BEVs), stationary battery energy storage devices, solar panels, solar shingles, and related products and services. Tesla operates primarily in the automotive and renewable energy industries, with its sector often classified as Consumer Discretionary, specifically Auto Manufacturing. Tesla's major products include a range of electric vehicles: the Model S, Model X, Model 3, Model Y, Cybertruck, and Tesla Semi. The company also produces energy generation and storage solutions such as Powerwall, Megapack, and solar panels/Solar Roof. Additionally, Tesla offers services like vehicle servicing, charging solutions through its Supercharger network, and self-driving software subscriptions (Full Self-Driving - FSD).

Tesla's global presence extends across East Asia, Europe, the Middle East, North America, Oceania, Southeast Asia, and the Indian Subcontinent. The company maintains manufacturing facilities, known as Gigafactories, in the United States (Fremont, California; Storey County, Nevada; Buffalo, New York; Austin, Texas), Germany (Berlin), and China (Shanghai). Tesla also operates a direct-to-consumer sales model with company-owned stores and galleries in 32 countries and service centers in 35 countries.

Tesla's brand reputation has seen a significant decline in the past year. According to the 2025 Axios Harris Poll, Tesla's reputation plummeted to 95th place, a sharp drop from its peak ranking of eighth in 2021 and 63rd in 2024. This deterioration in public perception is largely attributed to the controversial actions and political stances of CEO Elon Musk. Public sentiment has turned against Musk, who is seen as a primary factor behind the brand's downfall, impacting not only Tesla's image but also the broader electric vehicle industry.

Tesla's ownership is distributed among institutional, retail, and individual investors. Elon Musk is the largest individual shareholder, holding approximately 13% to 15.73% of the company's stock. Other significant individual shareholders include Kimbal Musk, Zachary Kirkhorn, Ira Ehrenpreis, and Robyn Denholm. Major institutional owners of Tesla include Vanguard Group Inc., BlackRock, Inc., State Street Corp, Geode Capital Management, Llc, and Capital World Investors.