Latest news with #ModelS
CNBC
19 hours ago
- Automotive
- CNBC
Tesla's IPO was 15 years ago. The stock is up almost 300-fold since then
At the time of Tesla's IPO 15 years ago, the company had generated roughly $150 million in revenue in its lifetime. That came almost entirely from the Roadster, a two-seat electric sportscar that boasted a range of 236 miles on a single charge. The Model S sedan was still in the lab, two years away from hitting the market. "The Model S, which is planned to compete in the premium vehicle market, is intended to have a significantly broader customer base than the Tesla Roadster," the company said in its IPO filing, ahead of its planned $226 million offering. A bet on Tesla, which debuted on the Nasdaq on June 29, 2010, was a wager on CEO Elon Musk's ability to develop a roster of mass-market electric cars and scale an automaker far away from the Detroit auto hub, focusing instead on Silicon Valley, home to much of the world's top tech talent. Musk didn't start Tesla, but he invested early, served as chairman and took over as CEO in October 2008, after leading a board revolt against founding CEO and inventor Martin Eberhard early that year. An investor who put $10,000 into Tesla's stock at the time of the company's IPO and held onto all those shares would now own a stake worth close to $3 million. A similar investment at the time in the S&P 500 would have resulted in holdings worth about $57,000. Far removed from its days as an experimental clean-tech startup led by a member of the "PayPal mafia," Tesla is now the eighth most-valuable publicly traded U.S. company, with a market cap of over $1 trillion after nearly hitting $100 billion in revenue last year. The Roadster is largely in the history books, and the Model S is no longer of great importance to the company's bottom line. Rather, it's Tesla's top-selling Model Y SUV and Model 3 sedan, along with sales of environmental regulatory credits, that helped define the company's financial success over the past decade. But for the 54-year-old Musk (his birthday was Saturday), now the world's wealthiest person, that's the past. He's told investors that the reason to buy and own Tesla stock from here has almost nothing to do with selling cars to consumers. "If somebody doesn't believe Tesla's going to solve autonomy, I think they should not be an investor in the company," Musk said on an earnings call in April of last year. He added, "We will, and we are." Two months after that, Musk said his company's Optimus humanoid robots that he hopes some day will perform like R2-D2 and C-3PO in Star Wars, could some day lift Tesla's market cap to $25 trillion. Musk, who last year characterized himself as "pathologically optimistic," has said he expects thousands of Optimus robots to be working in Tesla factories by the end of 2025, and that the company will begin selling the robot next year. As for autonomy, Tesla currently lags behind Alphabet's Waymo, which is operating public robotaxi services in several U.S. markets, and Baidu's Apollo Go in China. Tesla's Robotaxi just launched a very limited pilot service in Austin, Texas, earlier this month, and said Friday it had completed its first driverless delivery of a new car to a customer. While Tesla still has its share of fanatics and a largely bullish slate of analysts, Wall Street is skeptical of Musk's futuristic promises or sees them as baked into the stock price. The stock is down about 20% this year, badly underperforming major U.S. indexes and trailing all of its megacap tech peers. Apple, down 19.7% for the year, is the only one close. Earlier in June, Tesla's vice president of Optimus robotics, Milan Kovac, said he's leaving the company after a nine-year tenure, and Musk more recently fired Omead Afshar, the automaker's vice president of manufacturing and operations. Meanwhile, Tesla EV sales have been sluggish in 2025, with automotive revenue suffering a second straight year-over-year decline in the first quarter due to an aging lineup and bustling competition, especially from lower-cost Chinese manufacturers. New Tesla sales in Europe fell for a fifth straight month in May, according to data from the European Automobile Manufacturers Association, or ACEA, and Tesla's newest model, the Cybertruck, has failed to gain significant traction in the U.S. after a series of recalls. Hovering over Tesla's business is the unpredictability of Musk. Long glorified for his business success — through PayPal, Tesla, SpaceX, brain tech startup Neuralink and artificial intelligence company xAI, among other pursuits — Musk asserted himself in the political realm last year, when he endorsed Donald Trump for president and subsequently injected nearly $300 million into his campaign and related Republican causes. Musk spent the first few months of 2025 spearheading President Trump's Department of Government Efficiency (DOGE), slashing the size of the federal government and stripping resources from regulatory agencies, including those tasked with oversight of his companies. But his pivot to politics came at a cost, at least in the short term. Musk's vocal and financial support of Trump, endorsement of Germany's far-right AfD party and extended string of charged and divisive remarks and gestures, including on his social network X and in press appearances, has been correlated with declines in Tesla's reputation, and a drop in his overall favorability, according to polling data. "Unless Tesla can come up with a whole range of new products that will really excite consumers, and unless they can mitigate some of the antagonism caused by their leader, they will be seen as past their peak and will begin to go down," David Haigh, CEO of research and consulting firm Brand Finance, said in January. Brand Finance's data showed that the value of Tesla's brand fell by 26% in 2024, a second straight annual decline. That was before Musk's time working in the second Trump administration. Musk's official tenure in Washington, D.C., ended earlier in June, just as his relationship with the president was souring. Shares of Tesla fell 14% on June 5, as President Trump threatened to pull government contracts for Musk's companies, escalating a war of words over the president's spending bill. Musk temporarily slowed his posting about politics on social media after that, and appeared to focus more on promoting his businesses. But this weekend he resumed attacking portions of the bill that would hamper solar and renewable energy companies, including Tesla. Whether Musk is now focused enough to solve Tesla's problems and, even if he is, whether that's a big catalyst for the company, is very much up in the air. Musk and Tesla didn't respond to a request for comment. Tesla investors have learned that volatility is a big part of the story, and has been since the company's stock market debut. On more than 40 occasions in the past 15 years, Tesla's stock has gained or lost at least 20% in a single month. Here are the three best and worst months for the stock and what happened to cause these hefty moves: May 2013 In Tesla's best month on record, the stock jumped 81%. The company for the first time reported a quarterly profit, albeit a very narrow one. It didn't mark a sudden turn to profitability, as Tesla continued to lose money until 2018. But sales of Model S cars topped estimates as did revenue from zero emission vehicle (ZEV) credits, which have long been a boon for the company and have sometimes been the difference between a quarter ending in the red or the black. August 2020 Following a big dip in the early days of the Covid pandemic, Tesla's stock began an historic rally, leading to an eightfold increase in the stock in 2020, by far its best year on record. Its single best month that year was August, when the share price jumped 74%. Model 3 sales were accelerating rapidly, but much of the momentum was tied to buzz that the company could soon enter the S&P 500, and a pandemic market boom, when retail investors poured into meme stocks, cryptocurrencies and FOMO (fear of missing out) assets. Tesla's big announcement in August 2020 was a five-for-one stock split, with the share price having soared well past $1,000. Tesla would split its stock again in 2022. November 2010 Tesla's 62% rally in its fifth full month as a public company was as much a sign of early volatility as anything else. The next month, the company would lose almost a quarter of its value, wiping out most of those gains. Tesla's cash position at the end of 2010 was precarious enough that the company warned it may need to raise more money in the future, particularly "if there are delays in the launch of the Model S." On Nov. 9, 2010, Tesla reported a 31% drop in year-over-year revenue to $31.2 million and a net loss of $35 million. A week earlier, the company said Panasonic had invested $30 million in Tesla through a private placement. December 2022 Tesla's steepest monthly slump on record was a 37% decline to wrap up 2022, which was the worst year for the Nasdaq since the 2008 financial crisis. The company faced a production halt at its Shanghai facility, which was dealing with a fresh onslaught of Covid cases. Musk had been selling Tesla stock in big chunks to fund his $44 billion acquisition of Twitter, which he later renamed X. Musk said on Twitter Spaces on Dec. 22 that he wouldn't be selling any stock for 18 to 24 months. In a debate with a Tesla shareholder, he pinned Tesla's declining share price on Federal Reserve rate hikes, writing that "people will increasingly move their money out of stocks into cash, thus causing stocks to drop." The distraction of the Twitter deal weighed on Tesla shares, and Musk also frustrated some shareholders by borrowing personnel from the Tesla Autopilot team to work on his social media company's technology. February 2025 What was supposed to be a honeymoon period for Tesla, thanks to Trump's return to the White House, turned into a massive selloff, with the stock plummeting 28% in February. In its earnings report in late January, Tesla said automotive revenue sank 8% from a year earlier and the company reported a 23% drop in operating income. Tesla cited reduced average selling prices across its Model 3, Model Y, Model S and Model X lines as a major reason for the decline. Investors also worried about impending tariffs on goods and materials coming from Canada and Mexico, where some of its key suppliers are based. With Musk ramping up his political rhetoric, new vehicle registrations dropped in Europe, plummeting in Germany by around 60% in January from a year earlier. January 2024 The beginning of 2024 was almost as bad for Tesla, with the stock tumbling 25% to open the year. The company reported revenue and profit for the fourth quarter that trailed estimates, partly because of steep price cuts around the world. Tesla warned that volume growth in 2024 "may be notably lower" than in 2023, and cautioned investors that it was "currently between two major growth waves." There were countless other monumental moments for Tesla along the way and, had Musk gotten his wish in 2018, the IPO anniversary may have never taken place. "Am considering taking Tesla private at $420. Funding secured," Musk infamously tweeted in August of that year. Tesla's stock trading was initially halted and shares were volatile for weeks. A take-private never occurred. The SEC investigated and charged Musk with civil securities fraud as a result of the tweets. Tesla and Musk struck a revised settlement agreement in 2019 over those charges. The agreement forced Musk to temporarily relinquish his role as chairman of the Tesla board, a position that's now held by Robyn Denholm.
Reuters
3 days ago
- Automotive
- Reuters
Tesla fails to end Florida lawsuit over fatal Model S crash
June 27 (Reuters) - Tesla (TSLA.O), opens new tab failed to persuade a federal judge to end a lawsuit over the death of a woman struck after an Autopilot-equipped Model S ran off the road in Key Largo, Florida, paving the way for a possible trial next month. U.S. District Judge Beth Bloom in Miami said the estate of Naibel Benavides Leon, and her former boyfriend Dillon Angulo, may pursue design defect and failure to warn claims against billionaire Elon Musk's automaker, and seek punitive damages. A July 14 trial is scheduled. Lawyers for Tesla and the plaintiffs did not immediately respond to requests for comment. Tesla, based in Austin, Texas, has long faced questions about the safety of its self-driving technology. It has said its features are meant for "fully attentive" drivers, opens new tab holding the steering wheel, and the features do not make its vehicles autonomous. The lawsuit concerned an April 25, 2019 incident where George McGee drove his 2019 Model S at about 62 miles an hour through an intersection into the victims' parked Chevrolet Tahoe, which they were standing beside on a shoulder. McGee had reached down to pick up a cellphone he dropped on his car's floorboard, and allegedly received no alerts as he ran a stop sign and stop light before hitting the SUV, which struck the victims. Benavides Leon was allegedly thrown 75 feet to her death, while Angulo suffered serious injuries. In a 98-page decision, Bloom said the plaintiffs offered sufficient evidence that Autopilot defects were a "substantial factor" in their injuries. While McGee, who is not a defendant, conceded he was not driving safely, that didn't automatically make him solely responsible, "particularly given McGee's testimony that he expected Autopilot to avoid the collision," the judge wrote. Bloom said the failure to warn claim survived in part because Autopilot's risks might be hard to extract from the owner's manual on Model S touchscreens. The judge also dismissed manufacturing defect and negligent misrepresentation claims. The case is Benavides v Tesla Inc., U.S. District Court, Southern District of Florida, No. 21-21940.
Miami Herald
3 days ago
- Automotive
- Miami Herald
Tesla Sales Drop in Europe for Fifth Straight Month
Tesla's grip on the European electric vehicle market is slipping fast. The company's sales have dropped for the fifth consecutive month, and there's no clear sign of recovery. According to new data from the European Automobile Manufacturers' Association (ACEA), Tesla's registrations in the EU, UK, and EFTA countries plummeted nearly 28% in May compared to the same month last year. That's just the latest blow in what's become a sustained slide. So far in 2025, Tesla has sold about 75,196 vehicles across these markets - a 37.1% year-over-year drop. Market share is shrinking just as the electric vehicle segment continues to grow across Europe, suggesting that Tesla isn't simply suffering from a slowing market, but falling behind in an increasingly competitive one. Tesla's European sales fell sharply right out of the gate in 2025. In January, the company sold just 9,945 vehicles - a 45.2% year-over-year decline. February followed with a 40.1% drop. March fared slightly better with a 28.2% dip, but April was brutal, with demand nearly halving. May's 27.9% decline sealed a five-month losing streak. These losses reduced Tesla's market share in the region from 2.1% in early 2024 to just 1.3% in 2025. While the company is shrinking, the EV market around it is growing. All-electric vehicles accounted for 17.1% of the overall market through May, up from 13.1% during the same period last year. There's no single cause behind Tesla's slump, but several factors are at play. First, the competition has intensified, particularly from Chinese automakers offering lower-cost EVs that appeal to price-sensitive European buyers. Brands like BYD and MG are rolling out models that often undercut Tesla on price while offering comparable range and features. Second, Tesla's own product lineup is aging. The Model S is over a decade old. The Model 3 and Model Y, while recently refreshed, are no longer the standouts they once were. Other automakers have caught up, both in terms of technology and overall appeal. Third, CEO Elon Musk's increasingly political and polarizing public persona may be tarnishing Tesla's brand image in parts of Europe, although quantifying that impact is challenging. Still, public perception matters, and Musk's antics may be wearing thin with European consumers. Tesla's best hope for reversing course in Europe might be the long-rumored low-cost model aimed at expanding its reach. However, confusion reigns about whether such a vehicle will even be coming. Reuters reported in 2024 that the affordable Tesla had been shelved - a claim Musk denied, calling the report a lie. In the meantime, rivals are flooding the market with options, and European regulations are tightening. With the EU's planned 2035 ban on new combustion-engine cars looming, every automaker is doubling down on EVs. That could squeeze Tesla further unless it finds a way to compete on both innovation and price. For now, the company's dominance in Europe looks increasingly like a thing of the past. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Miami Herald
3 days ago
- Automotive
- Miami Herald
Tesla Sales Keep Falling as Elon Musk Fires Sales and Manufacturing Head
Elon Musk has fired Omead Afshar, the head of Tesla's sales and manufacturing operations in North America and Europe, Gizmodo and other outlets reported Thursday. While not officially confirmed by Tesla, Afshar's ouster would come amid declining car sales in the United States and Europe. On Thursday Bloomberg reported that Afshar, who has also worked for Musk's rocket company SpaceX as well as Tesla, had "left" the company for unspecified reasons. Forbes then reported that Afshar had been fired by Musk, something CNBC echoed in its reporting. Tesla's lack of a functioning public relations department makes getting a clear answer more difficult. These reports arrive as Tesla sales continue to fall. Though it remains the largest U.S. producer of battery-electric vehicles, Tesla is saddled with large inventories of Cybertruck pickups, and the refreshed Model Y has failed to gain momentum. A pause in production at the automaker's Austin, Texas, factory, which Tesla attributes to maintenance needs, will provide an opportunity to draw down those inventories. Tesla reportedly suffered a 16% dip in year-over-year registrations in April, according to data from S&P Global Mobility, while Cox Automotive announced Wednesday that it's projecting U.S. Tesla sales to fall 21% this quarter compared to the same period last year. The European Automobile Manufacturers' Association also reported this week that Tesla sales in 30 European countries had fallen 28% in May. That follows double-digit sales decreases for the automaker in Europe earlier this year. Tesla's sales slump could be attributed to several factors-and it's unclear what the automaker is doing to address them. Tesla faces more competition in both the U.S. and Europe as other automakers ramp up EV sales and, in the case of Europe, Chinese EV brands continue to make inroads into the market. In April, when Tesla saw a double-digit dip in year-over-year U.S. registrations, Chevrolet and Cadillac saw triple digit increases in their registrations, for example. The automaker's lineup also remains top-heavy with expensive models like the Cybertruck, as well as the aged Model S and Model X. Tesla has repeatedly put off development of a truly affordable EV that could compete with the Chevrolet Equinox EV or the upcoming Bolt EV revival. Musk's hard turn to the political right, exemplified by his recently concluded role as an advisor to the Trump Administration, has also alienated many traditional Tesla buyers, industry analysts previously told Autoblog. It's also led to boycotts and protests that will likely make new buyers harder to find. Instead of focusing on its core auto manufacturing business, Musk has led Tesla down the rabbit hole of automation. After years of hype and promises, the automaker finally launched its robotaxi service in Austin earlier this week. A pilot program uses a fleet of around a dozen Model Y crossovers to give public rides, but with human safety monitors onboard. But according to multiple reports, the National Highway Traffic Safety Administration (NHTSA) has already reached out to Tesla about numerous safety issues, including alleged speeding, random braking, and stopping in intersections for no reason. The NHTSA has already investigated Tesla for problems with driver-assist systems the automaker installs in production cars, and a lawsuit was recently filed over a fatal crash allegedly involving this tech. Related: Toyota, VW, And GM Slam The Feds Over Outdated Safety Rules Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Yahoo
5 days ago
- Automotive
- Yahoo
New Jersey man sues Tesla after Garden State Parkway crash kills 3 family members
A New Jersey man is suing Tesla after his parents and teenage sister were killed in a Garden State Parkway crash he blames on a 'defective and unreasonably dangerous design.' According to plaintiff Max Dryerman, the 2024 Model S was equipped with features including forward collision warning, lane departure avoidance and emergency lane departure that should have prevented the car from veering off the road last Sept. 14. But instead the car struck a guardrail and a concrete bridge support in Woodbridge shortly before midnight, according to Dryerman's 54-year-old parents in the front seat and his 17-year-old sister in the back seat were all killed in the crash. They had all reportedly been wearing seat belts. The lawsuit alleges the Tesla's design was to blame for the car swerving out of its lane and not braking correctly, according to Reuters. The complaint also blames Tesla owner Elon Musk's 2016 statement that his company's autopilot function was 'probably better' than a human driver for misleading Dryerman's father, who was behind the wheel. The lawsuit was filed last week in a Camden federal court. Tesla did not respond to or Reuters' requests for comment. Tesla started the week with a 'robotaxi launch' in Austin, Texas, that featured about 10 driverless cars carrying passengers, according to Fast Company. 'Super congratulations to the @Tesla_AI software & chip design teams on a successful @Robotaxi launch!!' Musk wrote on his X social media platform. He thanked his staff for putting a decade of work into the launch. ______
