In the past month, Tesla experienced a share price increase of 4%, coinciding with strong operational results from the first quarter of 2025, including the delivery of over 336,000 vehicles and production figures surpassing 362,000. During this period, broader market conditions were highly volatile, impacted by President Trump’s imposition of sweeping tariffs that have caused widespread declines in major indices like the Nasdaq. Despite this tumultuous backdrop, Tesla's robust delivery performance and energy storage deployment may have supported its shares when compared to the otherwise declining performance of tech-heavy stocks amidst the new trade policy uncertainties.

We've spotted 2 warning signs for Tesla you should be aware of.

Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.

In the last five years, Tesla's total shareholder returns soared significantly, reaching a very large percentage. During this period, Tesla outperformed the broader U.S. market, which delivered more modest returns. The company's strides in AI and Full Self-Driving (FSD) technology, along with the ambitious rollout of Optimus robots and advances in battery manufacturing, have been pivotal in driving this considerable growth. Significant partnerships, such as agreements with GM and Subaru to adopt Tesla's charging standard, have further positioned Tesla as a dominant force in the electric vehicle infrastructure space.

Major production and delivery milestones, including record vehicle deliveries in Q4 2024, alongside strategic moves like exploring new battery innovations, have bolstered Tesla’s financial standing. Despite facing legal challenges, including a $42 million settlement in March 2024, and speculation regarding investment in Nissan, these developments have largely reinforced Tesla's market position, offering a compelling narrative of growth and industry leadership.

Understand Tesla's track record by examining our performance history report.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NasdaqGS:TSLA.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com