Why Tesla Stock Jumped in December While EV Charging Stocks Tanked

Tesla's Performance and Market Position - Tesla's stock rose 17% in December and ended 2024 with a market-beating gain of about 62% [2][3] - The stock hit a record high before pulling back near the end of December [3] - Tesla's CEO Elon Musk backed Donald Trump and now holds an advisory position to the president-elect, which may expedite regulatory processes for autonomous vehicles [3][4] - Tesla is investing heavily in AI infrastructure to improve its self-driving software [4] - The company's energy storage segment more than doubled deployments last year, and a new megafactory in China will boost that business further in 2025 [12] EV Charging Companies' Challenges - ChargePoint Holdings and EVgo shares slid 12.3% and 37.8% respectively in December [2] - EVgo closed on a $1.25 billion loan facility from the U.S. Department of Energy but announced a secondary offering of its common stock priced below the stock price, causing downward pressure on its stock [8][9] - Charging infrastructure companies are relying on continued EV sales growth to create profitable revenue from their investments [7] - Tesla's Supercharger network remains dominant in North America, leading investors to sell shares in competing network companies [10] Regulatory and Market Dynamics - A potentially friendlier regulatory environment for self-driving car development may benefit Tesla [6] - Existing EV tax credits may be withdrawn, which could help Tesla as it is already profitable, while other EV makers may cede more market share to Tesla [6] - Tesla's new, lower-priced vehicle and advancements in humanoid robotics could provide future contributions [12] Future Outlook - Tesla will report fourth-quarter and full-year 2024 earnings on Jan 29, which may provide more insight into its future plans [13] - The company's future potential justifies at least a small position despite high risks [13]