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From quantitative point of view, The 31.9% change in Tesla (TSLA) stock from 7/12/2025 to 10/10/2025 was primarily driven by a 37.0% change in the company’s P/E Multiple. There is more to this story than just numbers, but first, let’s break down the stock price movement into its contributing factors.
Factors behind stock change
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Coming back to the “change”: The change in fundamental factors such as valuation, revenue and margins, has an underlying business and investor sentiment story behind it. Below, we have identified key developments that influenced stock price movement for TSLA stock. Before that, as a quick background: TSLA provides electric vehicles, regulatory credits, and designs, manufactures, installs, sells, and leases energy generation and storage solutions.
Here Is Why Tesla Stock Moved
- Tesla’s record Q3 2025 vehicle deliveries, exceeding analyst expectations, were significantly driven by customers rushing to purchase EVs before the expiration of the $7,500 US federal tax credit on September 30, 2025. This surge pulled demand forward, causing initial stock optimism but also concerns about potential softness in Q4 sales and pressure on future profitability.
- CEO Elon Musk’s purchase of approximately 2.57 million shares, valued at around $1 billion, in early September, strongly boosted investor confidence in the company’s long-term vision, particularly regarding its AI initiatives and product pipeline.
- The announcement on October 7, 2025, of cheaper “Standard” versions of the Model Y and Model 3 led to a stock decline, as investors had hoped for more substantial price cuts or entirely new models, and expressed concerns that these new variants might impact sales of higher-priced vehicles and further strain margins.
- Continued progress in Full Self-Driving technology, including the deployment of FSD version 13 and the anticipated release of version 14, along with expanding Robotaxi trials, maintained investor focus on Tesla’s long-term growth potential beyond just vehicle sales.
Our Current Assesment Of TSLA Stock
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Opinion: We currently find TSLA stock unattractive. Why so? Have a look at the full story. Read Buy or Sell TSLA Stock to see what drives our current opinion.
Risk: That said, Tesla clearly isn’t immune to big drops. It fell about 54% during the 2018 correction, dropped 61% through the Covid pandemic, and took the hardest hit in the inflation shock with a 74% decline. Even in crises that seemed less severe overall, Tesla’s pullbacks were still sharp. Good growth or hype can only do so much—when markets turn, the swings can be brutal.
Picking winners on a consistent basis is not an easy task – especially given the volatility associated with a single stock. Instead, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.