Last year was a mixed bag for Tesla (NASDAQ: TSLA) investors. The good news is that shares of the country's leading producer of electric vehicles (EVs) rose 11% in 2025. That follows a 63% jump in 2024, after more than doubling the year before.
However, the 11% move last year fell short of the market's 2025 return. Tesla was also one of the five "Magnificent Seven" stocks that couldn't beat the market last year. Still, Tesla stock has more than tripled in value over the past three years.
Coming through with a double-digit positive return last year is impressive, because -- and here comes the bad news -- Tesla itself had a pretty rough year. By the time Elon Musk's company announces its fourth-quarter results in two weeks, 2025 will be the first year of declining revenue in Tesla's publicly traded history. It will be the second straight year of sharply declining margins and earnings. Will the fundamentals catch up to the ascending stock, or will it be the other way around? Let's take a closer look at what the year ahead holds for Tesla and its investors.
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