Peter Thiel, co-founder of Palantir, reduced his stake in Tesla by 76%, selling over 205,000 shares, dropping from $86.6 million to $28.9 million. Despite this, Tesla’s shareholders approved a $1 trillion pay package for Elon Musk. Musk’s risky ventures and delayed promises pose risks, but Tesla’s long-term prospects seem promising with advancements in robotaxi initiatives and global expansion of Optimus.

Tesla’s financial performance remains uneven, with only a few instances of beating analyst estimates over the past two years. Third-quarter 2025 results showed a 12% revenue increase to $28.1 billion, driven by energy and services divisions. However, earnings per share fell 31% year-over-year to $0.50, missing estimates. Analysts have a consensus “Hold” rating on TSLA stock, with a mean target price surpassed and varied ratings from analysts.

Thiel’s stake reduction in Tesla raises questions about the company’s future and Musk’s role. Despite this, Tesla’s strong growth story is evident, with revenue growing at a compound annual rate of 27.69% over five years. The company’s revenue exceeded market expectations in Q3 2025, but profitability lagged. Vehicle deliveries increased by 7% annually to 497,099 units, while production declined by 5% to 447,450 units, indicating demand and production volatility in a competitive EV landscape.

Read more at Yahoo Finance: Peter Thiel Just Slashed His Stake in Tesla Stock by 76%. Should You Sell TSLA Too?