Tesla. The most famous stocks, part 2

When it comes to the stocks that have played the most with investors' emotions and wallets over the past decade, the first to come to mind are. Tesla. It's not just a car company, but Elon Muski the embodiment of a personal vision that has sought to change the world, move to Mars and done it all through unexpected twists and turns, scandals and stock price volatility. This story is full of 'wow' moments that make it the perfect example of how nothing is boring in the stock market.

Start at

The history leading up to Tesla's public share issue is as fascinating as the company itself. The company was founded in 2003, but not by Elon Musk. The company was founded by two engineers, Martin Eberhard and Marc Tarpenning, who saw the potential to create a sports car that runs on batteries and offers as good or better performance than petrol-powered vehicles. Their aim was to break the stereotype that electric cars are boring and slow. They named their company after a famous inventor and electrical genius Nikola Tesla in honour of.

Elon Musk joined the company in 2004, investing $6.5 million and becoming the largest shareholder and the first CEO, although he was later also referred to as a "co-founder". This early period was full of big challenges: the first model, Tesla Roadster The development was slow and expensive, which led to the near bankruptcy of the company. In spite of the difficulties and the constant need for money, Musk, as a visionary, was able to convince investors to support his dream, paving the way for success that later led to a successful IPO. This is a good example of how even the most brilliant stories often have secret founders whose names are not known to the wider public.

IPO

Tesla was not a successful company to begin with. In 2010, when they went public, it was the first American car company to do so since 1956. The share price was set at 17 dollars and the company was able to raise USD 226 million. However, this was only a fraction of what would have been needed to build the huge plants and expand production. Investors were sceptical. Could the start-up really compete with giants like Ford and General Motors? But Elon Musk wasn't selling cars. dream. He sold a vision of a world that runs on renewable energy and where cars are smarter than their drivers. It was this long-term ambition that made many long-term investors believe in his dream and put their money on the line.

Meteoric rise and painful falls in share prices

As with any ambitious story, Tesla's journey was not a straight one. For years, the share price was volatile, but from 2019 onwards, it began a meteoric rise that left the financial world gasping in astonishment. What was behind it?

The start of mass production: Once Tesla was able to prove it could mass produce Model 3s and Model Ys, investors started to see real growth potential.
Inclusion in the S&P 500: In 2020, it was added Tesla S&P 500 index, which meant that many large funds had to buy Tesla shares to rebalance their portfolios to the index. This, in turn, contributed to the price increase.
The climate change narrative: Growing awareness of climate change made investing in green technologies attractive and Tesla was at the heart of this trend.

However, in 2024 and 2025 the share price has been particularly volatile. During these years, there have been a number of significant declines, linked to both market conditions and internal company problems:

Falling demand: In 2024, Tesla's car business suffered significantly. Competition on the Chinese market (BYD, Nio) and also in Europe (Volkswagen, BMW) intensified, forcing prices down. According to the latest quarterly reports, Tesla's profitability in the automotive segment has declined and revenues have fallen. For example In the financial report for Q1 2025, their car sales revenue decreased year-on-year in 20% compared to 20%, which was a big shock for investors.
Focus scattering in the muscle: Many investors express concern that Elon's attention is fragmented between other projects such as SpaceX and the X (formerly Twitter). Wall Street analysts have repeatedly suggested that this dispersion could hamper Tesla's innovation and growth prospects.

Elon Musk - genius, visionary and share price driver

The Tesla story cannot be told without its charismatic and controversial leader, Elon Muskita. He is not just a CEO, but is brand embodiment. His personal behaviour, tweets on X and statements have repeatedly affected the share price.

“Funding secured" he says: In 2018, Musk tweeted that he had "funding secured" to privatise the company for $420. Share point. This led to a sharp rise in the share price, but later proved to be inaccurate, leading to an SEC investigation and a $20 million fine for both Musk and Tesla. This is a perfect example of how a driver's tweet can be the equivalent of a press release.
Contradictory statements and politics: In 2025, several European analysts criticised Musk's increasingly right-wing political views and his alliance with the former presidential administration. This raised concerns that the company would lose its environmentally conscious customer base and cause sales figures to fall. In Germany and Scandinavia, for example, Tesla's sales have fallen in 2024 and 2025, in part because some consumers are looking for products that align with political views.

How does the CEO's personal activity affect the share?

Elon Musk's actions are a great lesson on how to... individual brand may be a share's greatest asset or greatest risk. In today's social media age, executives have a direct connection with investors and consumers, which means that their statements and actions, which may not be related to the company's core business, can have a significant financial impact.

In the case of Tesla, this is particularly evident. When Musk makes positive statements about artificial intelligence or his plans for the future, the stock often rises immediately. But his political views, public spats or even the drama surrounding the Twitter (now X) acquisition have led to a sharp fall in the stock. For example, In July 2025 Tesla's share price fell 6.8%, which wiped nearly $79 billion off the company's value as investors reacted with concern to Musk's decision to form a new political party. This event was a clear illustration of how the personal ambition of a leader can be a threat to investors, which can hamper the company's future prospects.

This highlights an important investment rule: when you invest in a company with a great leader, you're not just investing in the business, you're investing in the personality. It's a double-edged sword - if the visionary drives the company forward, you make a profit, but if he or she becomes inconsistent, you could lose money.

The future: robot axes, AI and competition

While Tesla is facing serious challenges, Elon Musk's vision is not lost. The company is investing heavily robotic axes and Full Self-Driving technology development. While their technology is still a long way from being fully autonomous, Musk believes it will be a major source of future revenue. Evidence shows that this vision is slowly becoming a reality: In June 2025, Tesla started a pilot programme of its own robot taxi service in Austin., where selected users can book rides in Model Ys. Tesla has also received permits for a similar trial in Nevada and Arizona, showing that their long-term plan moving forward, even if it is slower than many investors expected.

It is also investing heavily in artificial intelligence, in the hope of creating. Optimus robotsthat could help automate the work of factories in the future. Musk has repeatedly claimed that the Optimus project could in the future make up to 80% of Tesla's value., an outrageous and ambitious promise that clearly sets Tesla apart from traditional car manufacturers.

Ultimately, the Tesla share story is an incredible narrative that illustrates the interplay between technology and politics, innovation and the personal brand of a leader. It's not a stock for those looking for stability, but for those who are captivated by a story as unpredictable and ambitious as its founder.