The positive shift for Tesla (TSLA) CEO Elon Musk follows a challenging period in 2025, which was impacted by his unpredictable relationship with President of the United States Donald Trump, as reported by Yahoo Finance. A proposed $1 trillion pay package began a series of favorable events, which was followed by Musk purchasing 2.5 million shares of TSLA stock. This has resulted in Tesla’s share price turning positive for the year, with a 10.46% rise on a year-to-date basis.
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European Sales and Deliveries Show Strength
Further uptick for TSLA stock is possible after the company reported sales gains in Europe. In September, sales increased by 20.5% in Denmark, 14.7% in Norway, and 3.4% in Spain. Overall deliveries for the third quarter of 2025 reached 497,099, which was 7.4% higher than the previous year and exceeded street expectations of 447,600 by a wide margin. The impending expiration of EV tax credits contributed to this performance, and some believe Musk’s renewed focus on Tesla has also played a role in the company’s revival.
Financial Performance Presents a Mixed Picture
Over the last two years, Tesla’s quarterly results have not inspired much confidence, a period that coincided with Musk’s plunge into politics. This led to protests against him and his company, dividing his customer base. The company has reported an earnings beat in only two of the last eight quarters, with year-over-year growth occurring just as often. This contrasts with its performance over the past five years, during which Tesla reported revenue and earnings CAGRs of 29.25% and 65.47%, respectively.
The most recent quarter continued this trend. Total revenues were $22.5 billion, a 12% decrease from the previous year. Earnings of $0.40 per share represented a sharper year-over-year decline of 23.1%. However, the earnings per share at least matched the consensus estimates, which was not the case in the two preceding quarters.
