Though Tesla’s shares doubled over the past 12 months, they’ve had a tough run since the inauguration. Investors are waiting to see if Elon Musk can keep the company’s charmed run going.

Tesla (NASDAQ: TSLA) shares initially shrugged off a weak earnings report before the stock got caught in the trade-war sell-off. The electric vehicle (EV) maker had a tough year in 2024, although Chief Executive Officer Elon Musk continues to be very upbeat about the future.

Tesla (TSLA) stock down 23% in 2025, facing challenges with EV sales. CEO Elon Musk bets on robots to disrupt market. Future uncertain.

Investors are looking for evidence Musk’s politics are hurting Tesla. It’s hard to find, but California might be turning against Musk—slowly.

Musk, who also runs SpaceX and a number of other companies, has been known to make big often exaggerated promises. For example, he once called the Hyperloop, which was never built, the "fifth mode of transport" and famously promised to take Tesla private in a Twitter post, saying he had secured financing that he didn't have.

The final earnings release of 2024 finalized another difficult year for Tesla’s bottom line, as its full-year net income came in at $8.4 billion, a 23% decrease from 2023 and a 40% decline from 2022’s record $14.1 billion profit, though its full-year revenue rose $97.7 billion, a 1% improvement from 2023’s record.

Though Tesla’s shares have doubled over the past 12 months, they’ve had a tough run since the inauguration. Investors are waiting to see if Musk can keep the company’s charmed run going.

In many ways, these have been tough days for Tesla. Falling sales. Squeezed profit margins. Proposed changes in US government policy that could cost the company billions.