In the past five years, the stock price performance of Tesla, an electric vehicle company under the world's richest man Elon Musk, has been remarkable, with a cumulative increase of up to 558%. However, Tesla's stock price trend has not been all smooth sailing. In February 2025, Tesla's stock price plummeted nearly 30%, which is related to the many negative news that the company and its leader Musk have faced recently. Since the US presidential election in November 2024, Tesla's stock price has been on a downward trend. After hitting a closing high of $479.86 in mid - December of that year, its stock price has almost given back all the gains after the election, with a cumulative decline of nearly 40%.
Nevertheless, Musk remains confident in Tesla's future. A user recently shared the view, based on analysts' estimates, that Tesla's profits are expected to increase by 258% in the next five years. But Musk responded that Tesla's profit growth is expected to reach 1000%. He said, 'This requires excellent execution, but I think it is possible for Tesla to achieve a 1000% increase in the next five years.'
It was noticed that Tesla's previously released 2024 financial report showed that the company's annual revenue was $97.69 billion, a year - on - year increase of 1%; among them, the automotive business revenue was $77.07 billion, a year - on - year decrease of 6%; the net profit was $7.091 billion, a year - on - year decrease of 53%; the gross profit margin was 17.9%, compared with 18.2% in 2023.
Musk's bold prediction has undoubtedly injected new confidence into the market. However, whether Tesla can achieve this goal within five years depends on its comprehensive performance in technological innovation, market competition, and global expansion.