Tesla’s Position Among the Magnificent Seven
Tesla (NASDAQ: TSLA) stands out as an automotive outlier in the Magnificent Seven stocks, which prominently feature tech companies involved in AI development. Despite being the world’s largest automaker by market capitalization at $1.6 trillion, Tesla faced substantial challenges in 2025, including a drop in auto sales and profits amid fierce competition and political controversies linked to CEO Elon Musk’s involvement in U.S. politics. Notably, third-quarter automotive deliveries reached a record 497,099 vehicles, but earlier sales declines reflected a 20% year-over-year revenue dip for the first quarter.
Financial Highlights
For 2025, Tesla reported an operating margin of 5.8% in Q3, rebounding from a low of 2.1% in Q1. Total revenue for Q3 was approximately $25.18 billion, marking a 12% year-over-year increase. Analysts predict Tesla is approaching a significant breakthrough in its Full Self-Driving (FSD) software, potentially transforming its millions of vehicles into robotaxis for mass adoption. With plans to expand production alongside these advancements, Tesla remains a focal point for investors looking ahead to 2026.
