Tesla Sales Are Way Down, but Stock Is Skyrocketing
Tesla (TSLA) sales are in a slump globally, with 11,000 fewer cars sold in February in 2025 compared to the same period last year, but the company’s stock was up nearly 12% on Monday.
In premarket trading, Tesla’s stock continued to rise, adding another 1.47% for Tuesday so far. This upswing is occurring despite poor sales figures for Tesla for the month of February. European electric car sales are up in 2024, but it is Tesla’s competitors that are seeing sales spikes.
Tesla’s popularity throughout the European Union has waned since the CEO’s partnership with Donald Trump has strengthened. For the year so far, Tesla sold 42% fewer cars than the same time last year in this region.
The UK, on the other hand, is seeing Tesla sales increase dramatically. Those are up 20% for February there, and the electric car marker is performing much better than on the mainland.
What Tesla Can Do to Improve
The recent spike in Tesla stock price can be attributed to positive economic factors. If those fade, then Tesla will likely see a stock decline. The company needs to focus on beating its competition, as it is now up against cheaper electric car models coming out of China primarily. There was a plan to launch a cheaper EV later this year, and if that happens, Tesla may gain back some of its lost market share.
Tesla may benefit from separating itself from its embattled CEO Elon Musk, who has proved divisive among car owners in recent months. Buying a Tesla is now seen as a political decision, and that is not likely to change for the near future since Musk is working as the head of DOGE (Department of Government Efficiency) for Donald Trump.
Tesla may need to change its image, but then again, buckling down on the image of a rightwing car maker could benefit the company too, if they can get conservative voters to become loyal customers and not just online supporters.
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