The stock of Tesla, Inc., the electric vehicle manufacturer led by CEO Elon Musk, has experienced substantial volatility, recording significant gains followed by sharp losses. On March 11, 2025, Tesla shares fell by more than 15% in just one day, which wiped out gains made after the U.S. presidential election of November 2024.
Over the last twelve months, Tesla's stock has shown resilience, gaining 24.7%. The current price stands at 206.00 Euro, but this figure follows some remarkable highs. During 2023, the company saw its stock value increase by 105.4%, and previous years were similarly impressive, including gains of 75.9% the year before. Notably, the year 2020 marked Tesla's most successful period, with shareholders enjoying staggering growth of 611.9%.
Looking back at the past decade, Tesla's stock reflects consistent long-term growth. Shareholders who invested 10,000 Euros at the start of the decade would have seen their stake balloon to 167,072 Euros—an astronomical gain reflecting annual returns averaging 34.9%. Despite the bullish trends, Tesla's current investment risk is classified as high, primarily due to its loss ratio of 5.26, indicating significant price fluctuations.
Particularly significant is the stock's performance following major political events. The sharp decline on March 11th serves as a stark reminder of the volatility Tesla shares can experience, particularly after high-stakes political transitions. Following the announcement of the new U.S. president, investor sentiment shifted quickly, contributing to the rapid decline.
Tesla, along with several other stocks, has been affected by macroeconomic factors, including changing interest rates, inflationary pressures, and shifting consumer patterns as the market reacts to global economic conditions. Investors are keeping a close eye on how these factors will impact Tesla moving forward.
The major questions surrounding Tesla's stock include whether investors should view the recent dip as a temporary setback or as part of larger structural weaknesses within the company's business model. With analysts divided on future projections, the consensus appears to underline a need for cautious optimism.
While some investors may recall the stock's history of significant rebounds, others view current trends with skepticism. The question now is whether Tesla can sustain its growth momentum or if this latest downturn signals more concerning trends within the market.
Overall, Tesla remains one of the more talked-about stocks on the market, with many interested observers watching closely. Investors contemplating entering or adding to their Tesla portfolios will need to weigh both the high historical returns against the equally high-risk factors.
Despite the recent losses, there are many who believe Tesla still has the potential to recover and perform; the coming months will be telling. Will investors stand by the company, buoyed by its innovative edge, or will the recent stock performance suppress enthusiasm going forward? Time will reveal how these dynamics play out.