Valued at a market cap of $1.2 trillion, Tesla, Inc. (TSLA) designs, develops, manufactures, sells, and leases high-performance fully electric vehicles and energy generation and storage systems. The Austin, Texas-based company operates through Automotive and Energy Generation and Storage segments.

Companies worth $200 billion or more are generally described as “mega-cap stocks”, and Tesla fits this criterion perfectly. Tesla offers a range of innovative products, including luxury electric vehicles such as the Model S, Model X, and Model Y. The company distinguishes itself through its direct-to-consumer sales model and position as a cutting-edge energy solutions provider.

The automotive and green energy giant's stock dropped nearly 27% from its all-time high of $488.54. Tesla’s stock has gained 21.8% in the past three months, surpassing the S&P 500 Index’s ($SPX) 1.1% decrease.

In the longer term, Tesla has slipped over 11.6% on a YTD basis, whereas SPX rose marginally. However, shares of TSLA soared 101.9% over the past 52 weeks, outperforming the SPX's nearly 11% rise over the same time frame.

Despite some fluctuations, the stock has been trading above its 50-day and 200-day moving averages since early May.

Despite reporting weaker-than-expected financials, Tesla stock surged 5.4% in the trading session after the release of its Q1 2025 results on Apr. 22. The company reported revenue of $19.3 billion, down 9.2% year-over-year, missing Wall Street expectations. Adjusted EPS came in at $0.27, marking a 40% decline from the same quarter last year, falling short of the analysts’ estimate of $0.44.

The rally in share price was driven by CEO Elon Musk’s comments suggesting a shift in focus away from his leadership role in the cost-cutting, efficiency-boosting initiative known as DOGE (Department of Government Efficiency), which he referred to as “mostly done.” Additionally, investor sentiment was lifted by Tesla’s announcement that its plans for new vehicles, including more affordable models, with production expected to begin in the first half of 2025.

Moreover, when compared, General Motors Company (GM) performed weaker than TSLA over the past 52 weeks, climbing 11.7%. However, shares of GM collapsed 9.7% on a YTD basis, performing slightly better than TSLA shares.

Despite TSLA’s outperformance compared to the broader market over the past year, analysts are cautious about its prospects. The stock has a consensus rating of “Hold” from the 41 analysts covering it, and it is currently trading significantly above the mean price target of $292.03.