Tesla stock climbed more than 3% to $470.38 in early trading on Monday, placing it within 4% of its all-time high of $488.54 reached in December 2024.
The rally comes even as the electric-vehicle maker’s European sales showed steep declines in October.
An target price upgrade from an analyst might be helping the Tesla stock on Monday.
Tesla’s latest sales data from Europe highlighted significant drops across several key markets.
The company’s new car registrations — a proxy for sales — fell 89% in Sweden, 86% in Denmark, 50% in Norway, and 48% in the Netherlands, according to local industry data.
In Spain, Tesla’s sales dropped 31%, even as industry-wide sales of fully electric and plug-in hybrid vehicles jumped 119%.
France stood as one of the few exceptions, where Tesla posted a small gain for a second consecutive month.
What’s hampering Tesla’s sales in Europe
Tesla’s declining sales in Europe come amid intensifying competition from both established automakers and newer Chinese entrants offering fresh EV models.
Through September, Tesla’s European sales were down 28.5% compared with the same period last year.
Analysts attribute the weakness to the company’s ageing lineup and a limited range of models, which has left it vulnerable in an increasingly crowded market.
Despite the October drop, Tesla remains the top-selling automaker in Norway, where nearly all new cars sold are electric. However, local competitors are catching up fast.
In Denmark, Tesla was outsold by several Chinese EV brands, including BYD, Xpeng, and Geely’s Zeekr.
In Spain, Tesla’s 393 cars sold in October were eclipsed by SAIC’s MG brand with 3,725 units, BYD with 2,806, and Chery’s Omoda and Jaecoo brands with 1,433 and 974, respectively.
In Sweden, Tesla’s 133 vehicles sold in October trailed not only mainstream brands but also Porsche, which delivered 172 units.
Overall, Tesla’s sales in Sweden through October were down 67% compared with the same period last year.
The company’s struggles in Europe have also been compounded by political backlash against CEO Elon Musk.
His public support for US President Donald Trump’s election campaign and European far-right parties has alienated some consumers, particularly in Western Europe.
Analyst raises target on Tesla stock
Despite the downturn in sales, optimism among investors remains strong.
Deutsche Bank reaffirmed its Buy rating on Tesla and raised its price target by $30 to $470, citing a “multi-modal SOTP framework” that incorporates higher estimates for the company’s robotaxi business.
Investor attention is now fixed on Tesla’s annual shareholder meeting scheduled for November 6, where shareholders will vote on CEO Elon Musk’s proposed $1 trillion compensation package.
Musk’s pay vote draws sharp divisions
The compensation plan, tied to a series of ambitious financial and operational milestones over the next decade, has sparked both support and opposition.
Tesla chair Robyn Denholm warned shareholders last week that Musk could leave the company if the plan fails to pass.
Proxy advisory firms ISS and Glass Lewis have urged investors to vote against the package, citing concerns about its size and potential governance risks.
Musk responded by calling them “corporate terrorists” during Tesla’s most recent earnings call.
Despite the criticism, analysts broadly expect the proposal to pass.
They warn, however, that a failed vote could unsettle investors and raise doubts about Musk’s long-term commitment to Tesla.
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