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HomeMarket NewsTesla shares ride high on Elon Musk's Musk’s robotaxi promise even as EV sales tapers
The elimination of the tax credit, the continuous criticism of Musk, and fierce competition from more affordable or attractive EVs produced by firms like BYD and Xiaomi in China and Volkswagen in Europe continue to pose business issues.
By CNBCTV18.com December 17, 2025, 6:47:25 AM IST (Published)
The shares of Elon Musk-led Tesla surged on Tuesday, spiking by over 3% after the richest person in the world underscored his bet on the company's future and the role of robotaxis in that future. Musk asserted that Tesla has been testing driverless vehicles in Austin, Texas, with no occupants on board.
Following a 36% plunge in the first quarter, the stock’s worst period since 2022, Tesla shares have rallied all the way back, reaching an all-time closing high of $489.88, jumping 3.1% on Tuesday. They’re now up 21% for the year.
Tesla is now the seventh-most valuable publicly traded company, behind Nvidia, Apple, Alphabet, Microsoft, Amazon, and Meta, and marginally ahead of Broadcom, with a market capitalisation of $1.63 trillion following the rise. According to Forbes, Musk's net worth is currently over $684 billion, more than $430 billion more than that of Google co-founder Larry Page, who is ranked second.
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Tesla reported a 20% decline in automotive revenue and a 13% drop in deliveries for the first quarter. The stock increased during the second quarter, but auto revenue fell 16%, and sales continued to slide.
The year has been considerably better in the second half. As American consumers rushed to purchase EVs and take advantage of a government tax credit that expired at the end of September, Tesla announced a 12% rise in third-quarter revenue in October. During that time, the stock increased by 40%.
The elimination of the tax credit, the continuous criticism of Musk, and fierce competition from more affordable or attractive EVs produced by firms like BYD and Xiaomi in China and Volkswagen in Europe continue to pose business issues.
In addition to that, Musk’s work with Trump, endorsements of far-right political figures across the globe and his blind support for dangerous political rhetoric sparked a consumer backlash that continues to impact Tesla’s brand reputation and sales.
