After a rough start to the year, Tesla’s (TSLA) stock has made a dramatic turnaround.
Shares of the electric vehicle pioneer are now up over 50% since its April 22 earnings report, a striking rebound despite Wall Street dialing back expectations. Profit estimates for 2025 have been trimmed by nearly 30%, from $2.74 per share to $1.93. Yet Tesla’s stock keeps climbing.
On Tuesday, the stock surged nearly 7%, followed by another modest gain in premarket trading Wednesday. At around $365 per share, Tesla is now up roughly 103% from this time last year. This puts it well ahead of broader benchmarks like the S&P 500 and Dow Jones Industrial Average, which inched up only slightly Wednesday morning.
Technical analysts suggest the rally might not be over yet. According to Will Tamplin at Fairlead Strategies, Tesla has “positive short-term momentum” and could test resistance near $384. In simpler terms, traders are still betting the upward trend has room to run.
But under the surface, serious questions linger—especially in Europe.
European Sales Plunge: Tesla Falls Behind Rivals
While investors cheer Tesla’s U.S. stock performance, European buyers are turning away. Tesla’s EV registrations in Europe fell nearly in half in April compared to the same time last year, with just over 14,000 cars registered. This marks the fourth consecutive month of declining sales in the region.
What makes the drop more striking is that Tesla’s European retreat comes amid a broader surge in electric vehicle sales across the continent. Overall EV registrations jumped more than 34% in April. That means while competitors are gaining traction, Tesla is losing ground.
The refreshed Model Y—Tesla’s flagship SUV and the world’s best-selling car—was expected to help reverse the trend. It didn’t. Even with the new version hitting showrooms, buyers appear unconvinced, especially in markets where rivals like Volkswagen, BMW, and China’s BYD are expanding aggressively.
Tesla’s market share in Europe has dropped from 1.3% to 0.7% over the past year. And with the European car market becoming increasingly competitive and political tensions surrounding CEO Elon Musk continuing to simmer, the company’s regional woes may persist.
Robotaxis, Musk’s Return, and What Comes Next
Despite the challenges abroad, Tesla’s long-term vision remains bold. CEO Elon Musk has made clear that the company’s future rests not just on electric cars—but on self-driving ones.
Tesla plans to launch its first unsupervised robotaxi service in Austin, Texas, as early as June. If successful, this could open the door to a massive new revenue stream. The company also aims to begin mass production of its dedicated robotaxi vehicle—the Cybercab—by 2026, and it has promised more affordable models in 2025.
Tesla has already made headway in driving down production costs. The average cost to manufacture a vehicle fell below $35,000 last year, down from $84,000 in 2017. This efficiency could allow the company to remain profitable even as it slashes prices, giving it a key edge over rivals.
Meanwhile, Musk is signaling a full return to Tesla, SpaceX, and his artificial intelligence venture xAI, following a period of divided attention in Washington. Investors responded positively to the news, hoping Musk’s renewed focus could steer Tesla through its next phase of growth.
Still, some long-term shareholders remain cautious. Critics argue that unless Tesla delivers real innovation—and does so on time—investors could be left disappointed. Sales of the much-hyped Cybertruck have underwhelmed, and skepticism surrounds whether the new, more affordable models will be truly game-changing or just scaled-down versions of existing ones.
For now, momentum and optimism—particularly around AI and autonomy—are driving Tesla’s rally. But with Europe turning cold and key product launches on the horizon, June could be a pivotal month for the company. Whether Tesla can sustain its market lead—or get overtaken by faster-moving rivals—remains the billion-dollar question.
On Tuesday, the stock surged nearly 7%, followed by another modest gain in premarket trading Wednesday. At around $365 per share, Tesla is now up roughly 103% from this time last year. This puts it well ahead of broader benchmarks like the S&P 500 and Dow Jones Industrial Average, which inched up only slightly Wednesday morning.
Technical analysts suggest the rally might not be over yet. According to Will Tamplin at Fairlead Strategies, Tesla has “positive short-term momentum” and could test resistance near $384. In simpler terms, traders are still betting the upward trend has room to run.
But under the surface, serious questions linger—especially in Europe.
European Sales Plunge: Tesla Falls Behind Rivals
While investors cheer Tesla’s U.S. stock performance, European buyers are turning away. Tesla’s EV registrations in Europe fell nearly in half in April compared to the same time last year, with just over 14,000 cars registered. This marks the fourth consecutive month of declining sales in the region.
What makes the drop more striking is that Tesla’s European retreat comes amid a broader surge in electric vehicle sales across the continent. Overall EV registrations jumped more than 34% in April. That means while competitors are gaining traction, Tesla is losing ground.
The refreshed Model Y—Tesla’s flagship SUV and the world’s best-selling car—was expected to help reverse the trend. It didn’t. Even with the new version hitting showrooms, buyers appear unconvinced, especially in markets where rivals like Volkswagen, BMW, and China’s BYD are expanding aggressively.
Tesla’s market share in Europe has dropped from 1.3% to 0.7% over the past year. And with the European car market becoming increasingly competitive and political tensions surrounding CEO Elon Musk continuing to simmer, the company’s regional woes may persist.
Robotaxis, Musk’s Return, and What Comes Next
Despite the challenges abroad, Tesla’s long-term vision remains bold. CEO Elon Musk has made clear that the company’s future rests not just on electric cars—but on self-driving ones.
Tesla plans to launch its first unsupervised robotaxi service in Austin, Texas, as early as June. If successful, this could open the door to a massive new revenue stream. The company also aims to begin mass production of its dedicated robotaxi vehicle—the Cybercab—by 2026, and it has promised more affordable models in 2025.
Tesla has already made headway in driving down production costs. The average cost to manufacture a vehicle fell below $35,000 last year, down from $84,000 in 2017. This efficiency could allow the company to remain profitable even as it slashes prices, giving it a key edge over rivals.
Meanwhile, Musk is signaling a full return to Tesla, SpaceX, and his artificial intelligence venture xAI, following a period of divided attention in Washington. Investors responded positively to the news, hoping Musk’s renewed focus could steer Tesla through its next phase of growth.
Still, some long-term shareholders remain cautious. Critics argue that unless Tesla delivers real innovation—and does so on time—investors could be left disappointed. Sales of the much-hyped Cybertruck have underwhelmed, and skepticism surrounds whether the new, more affordable models will be truly game-changing or just scaled-down versions of existing ones.
For now, momentum and optimism—particularly around AI and autonomy—are driving Tesla’s rally. But with Europe turning cold and key product launches on the horizon, June could be a pivotal month for the company. Whether Tesla can sustain its market lead—or get overtaken by faster-moving rivals—remains the billion-dollar question.
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