Tesla Stock Skyrockets as Musk Shifts Focus Back — But Crashing EU Sales Signal Trouble
Tesla stock jumps 15% in 3 weeks as Elon Musk refocuses on the company — but plunging Europe sales raise fresh demand concerns.

Tesla shares rallied sharply on Friday, closing out a third straight week of gains and reaching their highest price since February. The electric vehicle giant saw its stock climb 4.7% on the day and 4% for the week, bringing its three-week gain to nearly 15%.
Friday’s surge was fueled by renewed optimism around U.S.-China trade talks after President Trump suggested the U.S. may scale back tariffs on Chinese goods. Market confidence was already on the rise following a trade agreement with the UK earlier in the week — signaling a potential easing of global tensions that have rattled investors for months.
For Tesla, the timing of this trade optimism pairs well with a notable shift at the top. CEO Elon Musk, who has spent significant time focused on political matters during his role in the Trump administration, recently indicated plans to re-center his attention on Tesla’s operations. That move is seen as a positive by many investors who associate Musk’s day-to-day involvement with long-term innovation and stock growth.
Strong U.S. Momentum Offsets Slumping European Sales
Despite the bullish tone on Wall Street, Tesla’s fundamentals are sending mixed signals. In Europe, Tesla continues to struggle. Latest data from the UK shows Tesla registered only 512 new vehicles in April — down 62% year-over-year. Germany, home to Tesla’s Berlin Gigafactory, saw registrations fall 46% to 885 vehicles. Similar drops were recorded in France (-59%), Denmark (-67%), and Sweden (-81%), suggesting weakening demand across multiple key markets.
This follows a tough first quarter, where Tesla’s global deliveries fell short of analyst expectations. Even in the U.S., the company is pulling multiple levers to reignite interest — including launching a lower-cost, rear-wheel-drive version of the refreshed Model Y SUV. Starting at $46,630 before tax credits, the new variant comes with attractive financing, signaling Tesla’s push to recover sales momentum in Q2.
Model Y Inventory Build-Up Raises Concerns
While Tesla’s pivot to a more affordable Model Y may help in the short term, signs of soft demand remain. Reports suggest that "Launch Edition" units of the $59,900 Model Y are building up at showrooms — raising questions about buyer appetite in the current EV market.
Still, Tesla’s stock is riding a wave of sentiment, driven more by big-picture bets than immediate performance. Wall Street is closely watching Musk’s return to a hands-on role, upcoming developments in Tesla’s long-awaited robotaxi program, and broader shifts in U.S. trade policy.
Tesla Loses Battle Over ‘Robotaxi’ Trademark
In a lighter but symbolic turn of events, Tesla this week lost its bid to claim exclusive rights to the term "robotaxi" following a U.S. Patent and Trademark Office ruling. While it won’t impact operations, the decision underscores the competitive landscape Tesla faces as more automakers and tech firms race into autonomous vehicle development.
Strong Stock, Weak Sales: Can Tesla’s Rally Hold Without Europe?
Tesla’s stock surge this month is less about its core business performance and more about market optimism tied to Trump’s shifting China tariff stance and Elon Musk's renewed focus on the company. But the sales drop across Europe — especially in key EV markets like Germany, France, and Sweden — is a clear warning sign. If Tesla doesn’t turn around international demand soon, the current rally could lose steam quickly. Investors betting on the stock’s momentum should keep a close eye on upcoming second-quarter sales data and how well Tesla’s new pricing and financing strategies perform in the US market.
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