Tesla is heading into the final trading days of 2025 with its stock still firmly higher on the year, despite renewed short-term pressure.
Shares of the electric vehicle maker closed at $459.64 on December 29, marking a 21.2% gain year to date. At the start of 2025, Tesla (NASDAQ: TSLA) was trading at approximately $379 per share.
Thus, a $1,000 investment made on January 2 would have purchased around 2.64 shares. Based on the December 29 close, that position would now be worth roughly $1,214, translating into a gain of about $214 over the year.
Tesla’s 2025 rally followed early-year volatility
Tesla’s 2025 performance reflects a year shaped by both recovery and volatility. After a sharp sell-off in the first quarter, the stock rebounded strongly through the second half of the year as investors reassessed demand trends, margin stabilization, and progress in energy storage and autonomy-related initiatives.
However, the rally has not been without friction, particularly as supply-chain headlines re-emerged late in the year.
Battery supply risks resurface after L&F deal revision
Adding to that uncertainty, South Korean battery materials supplier L&F disclosed that the value of its supply agreement with Tesla has been reduced sharply, from an earlier projection of $2.9 billion to just over $7 million.
The deal, originally announced in 2023, was intended to cover high-nickel cathode materials for Tesla’s in-house 4680 battery cells through the end of 2025. While no detailed explanation was provided, analysts point to shifting production timelines, evolving battery strategies, and demand recalibration rather than a complete breakdown in the relationship.
China silver export rules raise new cost concerns
Input-cost risk has also come back into focus. Elon Musk recently warned that China’s new licensing rules on silver exports could tighten supply just as prices experienced a sharp spike and pullback.
Silver remains a critical input for automotive electronics and solar components, making procurement conditions an important variable for Tesla’s cost structure moving into 2026.
What Tesla’s 2025 performance means heading into 2026
Taken together, Tesla’s 2025 return highlights the stock’s familiar profile: meaningful long-term upside paired with persistent near-term volatility.
Investors who entered at the start of the year, the position remains profitable, but price action into early 2026 is likely to remain sensitive to supply-chain developments, input costs, and broader market liquidity as the new year begins.
