US electric vehicle (EV) specialist Tesla has recorded the highest share prices in its history, driven by both external and internal factors.
Yesterday morning (December 11, US time), Tesla’s share price reached US$424.88, surpassing its previous peak of US$414.50 set in November 2021, which came at a time of exponential growth for the disruptive EV maker.
It’s a significant turnaround from the US$113.06 share price which the company was suffering at the start of 2023, following CEO Elon Musk’s US$44 billion purchase of social media platform Twitter (now known as X).
While Tesla’s share price has been consistently but slowly recovering from that low, its biggest shot in the arm came after Donald Trump was voted in as the next US President on November 5.
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Mr Musk had thrown support behind Mr Trump in the lead-up to the election, despite the President-elect making EVs a major target in his campaign, which included him falsely claiming the US government has mandates that will require electric vehicle (EV) sales to reach 100 per cent.
Last month, news agency Reuters reported word from insiders close to Mr Trump that the US federal tax credit for EVs, which can be worth up to US$7500 (A$11,625), will be axed in early 2025.
Though some may see this as a threat to Tesla, Mr Musk welcomed the move and it is more likely to harm his potential rivals, which need to trade on their price advantage in an effort to dislodge the EV sales leader.
Mr Trump is also reportedly looking to create pathways to expedite making fully autonomous cars legal on US roads.
Autonomous driving has been a major focus of Tesla, not only via the ‘Autopilot’ and ‘Full Self-Driving’ systems in its current model range, but also with its upcoming driverless Cybercab robotaxi.
Tesla Cybercab concept
Another factor behind Tesla’s share price increase has been the upturn of sales in China, one of its largest markets.
Tesla’s Chinese division this week said it sold 21,900 electric vehicles in China in the first week of December, its strongest week of the fourth quarter so far, which followed its best month of sales so far this year in November.
In the first three quarters of 2024, Tesla’s global deliveries have slipped by 2.4 per cent from the same period a year prior, with just over 30,000 vehicles separating the two figures – a difference which may easily be overcome in the final three months.
Model 3 
Model Y
It’s a different story in Australia though, where Tesla deliveries have declined in nine of the 11 months so far this year.
To the end of November 2024, Tesla has delivered 34,754 vehicles in Australia, down 20.9 per cent on the same period in 2023. A weak October saw neither the Model Y nor Model 3 top the EV sales chart for the first time since delivery data for the brand was tracked.
Despite this, Tesla is expected to remain Australia’s best-selling EV brand in 2024.
