Has Tesla Restabilised after a Turbulent Time in 2025?
For the first time in months, Tesla has shown financial growth.
Following Elon Musk's decision to purchase approximately US$1bn worth of Tesla stock through a revocable trust on September 12, the company's shares leaped back into positive territory for the year.
This was Elon's first open-market acquisition since February 2020, propelling Tesla shares upward by 6.4% and positioning the firm about 4% higher compared to its start at the beginning of the year.
The investment came as Tesla Chair Robyn Denholm discussed the merits of the company's unprecedented US$1tn compensation package for Elon, designed to incentivise his continued leadership over the next decade.
"Simply put, retaining and incentivising Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history," Tesla said in a shareholder letter.
A volatile year for Tesla
Tesla's recent recovery follows on from a turbulent first half of 2025.
It has been a year of turmoil for the world’s largest EV manufacturer, in which it has contended with mass boycotts, political endorsement, political backlash, scandals, lawsuits, technological failures and more.
The saga began in late 2024 when Tesla's stock reached a milestone US$1.5tn market cap, largely fuelled by Elon's significant involvement in US President Donald Trump's election campaign.
However, his outspoken support for Trump triggered consumer boycotts from those opposing the President.
Amidst this conflict, Tesla's consumer backlash peaked after Elon made a controversial salute at a pro-Trump rally in January.
The repercussions included sporadic arson and vandalism at Tesla retail locations and charging stations, contributing to a 13% downturn in the company's global vehicle deliveries, hence marking some of Tesla's most challenging quarters yet.
Vehicle sales slumped across major markets, with Cox Automotive estimating Tesla's share of the US electric vehicle market slipped below 40% in August.
This year the firm had to pay compensation to the families of two people who were killed by a Tesla being driven with Autopilot mode engaged, representing a huge blow to the company’s self-driving technology.
Then, with Tesla looking to progress its fully autonomous taxi service, trials for its ‘robotaxis’ have been wildly erratic, leading to concern from civilians and investors.
But despite all of this, the company now appears to have attained a degree of stability, with its share prices returning to rude health.
Some economists still believe, however, that the company’s drop in sales will come back to harm Tesla’s value in the long run.
"There's an increasing disconnect between the stock price and what we see as the earnings estimate trajectory," says CFRA analyst Garrett Nelson.
Navigating political involvement
While Tesla’s CEO stepped back from US politics in the springtime, he has continued to be outspoken on global issues.
At one point, Elon make a remote appearance at a march in London, organised by Tommy Robinson.
"You either fight back, or you die," Elon told rallygoers in a video that was livestreamed directly to the English capital. He also suggested that "violence is coming" to the UK.
A spokesman for UK Prime Minister Keir Starmer called Elon's language inflammatory and dangerous.
Robyn Denholm has since defended the CEO's political activities.
"What he does from a personal perspective, in terms of his political motivations, is up to him,” she says. “We're in a democracy, so everybody gets to voice their points of view."
With that said, the Tesla board has acknowledged seeking "assurances that Musk's involvement with the political sphere would wind down in a timely manner" during its compensation negotiations with Elon.
A strategic gamble
With Tesla seeking to guarantee Elon’s leadership for the next decade, the company is prepared to offer him what would be the largest executive pay plan in corporate history, potentially worth around US$1tn.
Receiving the full amount would, however, be dependent on Tesla reaching several ambitious milestones over the next 10 years.
The plan requires Tesla to reach a market cap of US$8.5tn, which is more than double Nvidia's current valuation as the world's most valuable company.
Other milestones include delivering 20 million vehicles, deploying one million robotaxis commercially and achieving US$400bn in adjusted earnings before interest, taxes, depreciation and amortisation.
Some experts regard this roadmap – and Elon’s ongoing commitment – with some scepticism, though.
"If you are a little more sceptical on Tesla's robotics endeavours, this is simply Elon buying shares to indicate his commitment to the company so that the recently proposed pay package gets approved," says Dmitry Shlyapnikov, an analyst at Horizon Investments.
