Tesla Shares Jump 5% to $356.33 Despite 49% Drop in European Sales

Key Moments:

Markets React to Tariff Delay and Musk’s Renewed Focus

Tesla’s share price moved higher on Tuesday, rising 5% to $356.33 in early trading, even as troubling sales figures and market headwinds threatened investor sentiment. Broader markets also rebounded, with the S&P 500 and Dow Jones Industrial Average registering gains. Contributing to the positive tone was President Donald Trump’s decision to delay the new tariffs on European imports until July rather than implementing them on June 1st as previously planned.

CEO Elon Musk also appeared to be working to restore investor confidence. In a post on social media platform X (formerly Twitter), Musk declared he has returned to working on Tesla 24/7 and residing in various company rooms, including conference, server, and factory areas. The message helped offset a wave of disappointing data regarding the company’s global performance, particularly in Europe.

European Deliveries Plunge in April

Tesla’s performance in Europe took a significant hit in April. According to the European Automobile Manufacturers’ Association, new car registrations for the automaker dropped 49% to 7,261 units year-over-year. Within the EU, the drop was even steeper, with sales declining 53% to 5,475 vehicles.

For the year through April, Tesla has sold 61,320 cars across Europe, reflecting a 39% year-over-year slide. While that follows a smaller 28% decline in March, prior months saw sharper deterioration. Sales in January and February were down 43% compared to the same period in the previous year.

China Sales Dip Amid Trade Tensions and Global Slowdown

In China, Tesla’s second-quarter sales through the first eight weeks have decreased roughly 23% year-over-year, according to Wall Street’s tracking of weekly data. The US-China trade dispute was cited as a primary catalyst behind this decline. Further pressuring the competitive environment, Chinese EV giant BYD reduced prices on several models, signaling the start of a new price war.

Tesla’s global sales also faced pressure, with yearly deliveries falling 13% in Q1, marking Tesla’s steepest quarterly drop to date. Analysts have attributed the weakening sales partly to brand-related challenges, including Musk’s political activity tied to the Trump administration and the delayed update of the Model Y.