Tesla set for slowest rise in three years, sagging demand pressures stock

Shares of Elon Musk-led electric vehicle maker Tesla TSLA.O up 12.5% this year, set for their slowest rise in three years, despite hovering near record highs

Shares were pressured by flagging demand this year, particularly in Europe and North America and Musk's political efforts that drew backlash

The stock fell about 65% in 2022, owing to production disruptions, the U.S. Federal Reserve hiking interest rates and Musk selling about part of his Tesla stake to fund the acquisition of Twitter

The stock, which outpaced the broader S&P 500 index .SPX in 2023 and 2024, is set to rise at a slower pace than the benchmark this year

Tesla shares, which were trading in the negative for a bigger part of the year, recovered after investors approved an $878 billion compensation package for Musk

Tesla is set to end the year with a market capitalization of ~$1.51 trillion, about double the next six automakers combined

Stock's 12-month forward P/E ratio of ~218 is several times that of the world's most valuable AI and tech companies