Tesla (TSLA) Stock Rises 11% in 2025, Market Cap Reaches $1.4 Trillion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Stock Performance: Tesla's stock rose 11% in 2025, with a staggering 3,130% increase over the past decade, leading to a market cap of $1.4 trillion, reflecting strong market expectations for future growth.
- Autonomous Driving Progress: In 2026, Tesla needs to expand its robotaxi service, which was launched in a limited capacity in Austin, Texas last year, by entering new cities and increasing Cybercab production to meet market demand for full self-driving technology.
- Core Business Challenges: While Tesla's valuation highlights market focus on its autonomous driving ambitions, automotive deliveries fell 9% year-over-year in 2025, indicating pressure on its core EV manufacturing business that requires improvement in growth and margins.
- Macroeconomic Impact: Rising interest rates are increasing new car costs, and the expiration of the EV tax credit adds competitive pressure, necessitating Tesla's focus on its core business in 2026 to achieve sales growth and margin improvements that shareholders expect.
Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSLA is 384.14 USD with a low forecast of 19.05 USD and a high forecast of 600.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
14 Buy
10 Hold
10 Sell
Hold
Current: 438.570
Low
19.05
Averages
384.14
High
600.00
Current: 438.570
Low
19.05
Averages
384.14
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
