Though Tesla Motors (NASDAQ: TSLA) was savaged in the first half of 2024 and even held the dubious honor of being among the worst-performing S&P 500 stocks for a time, it managed a surprise rally in the year’s final months.
TSLA shares’ surge was strong enough that they recorded a new all-time high (ATH) as recently as December 17 — less than three months ago — when they hit $479.86. The rally and the bullish expectations driven by Elon Musk’s promises and the billionaire’s closeness to President Donald Trump led many to estimate that the best is yet to come.
Given the rally, the hopes, but also the rude awakening that followed the November 5 to December 17 90.84% rally, Finbold decided to examine how a $1,000 investment made at ATH would have fared by press time on February 27.
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$1,000 worth of TSLA shares bought at ATH would be worth this much
As TSLA stock has dropped 23.14% since the first market session of 2025 and 39.49% since it claimed a new ATH, it should come as no surprise that investors who backed the electric vehicle (EV) maker on December 17 would have suffered a significant loss.
Specifically, a $1,000 share purchase made on the day would have depreciated to $605.10, meaning that the hypothetical unfortunate traders would have suffered a loss of $394.90.
Still, despite the sharp decline, it is worth remembering that Tesla stock has yet to erase its entire gain and remains 105% above its 2024 lows at $138.80. This means that those investors who timed their purchase right and bought at the bottom of the dip would now have $2,050 — a $1,050 profit from the hypothetical $1,000 originally spent.
Why Tesla stock might not be a ‘buy’ or a ‘hold’
Elsewhere, it is noteworthy that holding beyond the current prices is not a riskless strategy despite a market truism stating that rallies follow downturns much like corrections follow surges.
The figures Tesla posted in its recent reports are hardly encouraging, as 2024 witnessed the firm’s first-ever year-over-year (YoY) delivery drop from 1.81 million to 1.79 million. Simultaneously, recent data from the E.U. indicates Elon Musk’s EV maker sold 45% fewer vehicles than in the same month in 2024.
On the flip side, there remains some silver lining for Tesla Motors.
Why TSLA stock could rally in 2025
Should Elon Musk’s claims that 2025 will see an unprecedented proliferation of autonomous vehicles, the firm’s final transformation into an artificial intelligence (AI) powerhouse, and “Optimus” humanoid robots becoming commercially available, TSLA shares could set new and stellar ATHs.
Similarly, data from the E.U. indicates that the “EV winter” might be coming to an end as the total number of electric vehicles sold rose significantly compared to 2024, indicating Tesla might soon enjoy a recovery.
Still, the silver lining emerging from such figures might not glisten as much as one might expect, as the overall rise in sales was accompanied by a drop in demand for Tesla vehicles.
Featured image via Shutterstock
