Tesla’s stock price increased by 6.9% on Tuesday, closing at $362.89, amid mixed industry signals. The rally was partly driven by broader market gains after President Donald Trump announced a delay in tariffs on the European Union until July, softening the impact of ongoing trade tensions. Elon Musk reaffirmed his commitment to working around the clock, sharing on X that he’s “back to spending 24/7 at work and sleeping in conference/server/factory rooms,” which investors interpreted as a sign of renewed focus. Despite this positive momentum, Tesla’s European sales data revealed a significant downturn: new car registrations in Europe plunged 49% in April to 7,261 units, with EU sales dropping 53% to 5,475. Year-to-date, Tesla’s European sales have declined 39% to 61,320 units in 2025, with March alone witnessing a 28% drop, and the first quarter marking its worst global quarterly decline at 13%.
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Meanwhile, Tesla faces mounting challenges in China, where sales have declined approximately 23% in the first eight weeks of the second quarter compared to last year. This downturn is attributed less to Musk’s political involvement and more to ongoing US-China trade tensions, which have led Chinese consumers to avoid American products. Additionally, Chinese EV leader BYD announced price cuts across several models, prompting other automakers like NIO to follow suit, with NIO’s shares falling 2.1%. These developments highlight intensifying competition and pricing pressures within the Chinese EV market, complicating Tesla’s growth prospects in the region.
Despite the recent sales struggles, Tesla’s stock has rebounded significantly since its April 22 earnings report, rising roughly 43% from that point. The company reaffirmed plans to launch a self-driving taxi service in Austin, Texas, in June, which investors see as a potential catalyst for future earnings growth. As of Tuesday, Tesla’s stock has fallen about 16% overall in 2025, but the company’s strategic moves and market optimism signal a cautious optimism among investors amid industry headwinds.
Source: barrons
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