Al Root

Tesla stock rose early Tuesday as investors hope for an electric Santa Claus rally.

Shares of the electric-vehicle maker were up 0.4% at $431.75 in premarket trading, while S&P 500 and Dow Jones Industrial Average futures were up 0.2% and 0.1%, respectively.

Coming into Tuesday, Tesla stock has risen 7% this year and 20% over the past 12 months. Investors might like a bit more cushion but shares were on pace for their third consecutive annual gain. Tesla stock declined 65% in 2022, then bounced back, gaining 102% in 2023 and 63% in 2024.

Tesla only has declined in two years since the company's initial public offering in 2010, in 2016 and 2022.

December is a solid month for the stock. Shares have risen 60% of the time, gaining nine times and falling six times. Tesla has risen in 54% of the months since going public in 2010.

Santa Claus might be helping a little. Stocks tend to rise late in December around the holidays -- that's the Santa Claus rally. Exactly why it happens is hard to say. It could be psychological or related to portfolio prep for tax time. Whatever the reason, a rally will help Tesla shares turn in another positive year.

December, however, is about as volatile as any other month. Tesla shares have moved an average of about 14%, up or down, which is close to the 13% average for all months.

The worst December for Tesla stock was 2022, when Tesla shares fell 37%. That capped off a difficult period for Tesla investors who worried that CEO Elon Musk buying Twitter, now X, would distract him from running his car company.

Musk closed on his purchase of X in October 2022.

Write to Al Root at allen.root@dowjones.com

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December 02, 2025 07:26 ET (12:26 GMT)

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