Tesla Stock Rebounds, Erases 2025 Losses With 85% Surge Since April

Tesla’s turbulent year has swung back into positive territory after a sharp rally that lifted shares nearly 85% since their April lows, driven by CEO Elon Musk’s hefty stock purchase and renewed investor optimism.

The electric vehicle maker endured its worst first quarter since 2022, with shares plunging on the heels of President Donald Trump’s new tariff plans announced in early April. The stock bottomed at $221.86 on April 4, leaving Wall Street questioning Tesla’s momentum.

But since then, Tesla has mounted a remarkable comeback. On Monday, shares gained 3.6% to close at $410.26—more than $6 above their final 2024 price—erasing year-to-date losses. A regulatory filing revealed Musk bought about $1 billion in Tesla shares through his family foundation, a move that bolstered confidence among investors.

The rebound marks the second consecutive year Tesla has climbed back after a rough opening stretch. In 2024, shares sank 29% in the first quarter before ending the year up 63%. Analysts have recently pointed to Tesla’s new MegaBlocks energy storage systems and Musk’s proposed compensation plan—potentially worth $1 trillion over the next decade—as reasons for optimism.

Still, Tesla remains the second-worst performer among tech megacaps in 2025, ahead of only Apple, which is down about 5% year-to-date.

Headwinds Remain

Despite the rally, Tesla is grappling with multi-quarter sales declines, an aging lineup of EVs, and mounting competition from Chinese rivals such as BYD. Consumer backlash over Musk’s political spending—including nearly $300 million to support Trump’s return to the White House—has also weighed on brand perception.

Tesla leadership has sought to redirect attention to longer-term bets on robotaxis and humanoid robots. Musk has pitched the Optimus robot as capable of handling factory work and even childcare, though the technology remains far from commercialization.

For now, Tesla’s stock surge underscores how quickly sentiment can shift on one of the market’s most closely watched—and polarizing—companies.

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