Tesla stock gains 1.9% despite EU sales slump
Tesla’s European sales have shown consistent monthly declines since January 2025
As of June 16, Tesla stock is trading at $325.31, up 1.9% over the past 24 hours.
This marks a notable recovery for the electric vehicle giant after a period of high volatility.
Highlights
- Tesla stock climbed 1.9% to $325.31, rebounding from recent lows and trading above key moving averages.
- Despite declining European sales and political noise surrounding Elon Musk, investor sentiment remains cautiously optimistic.
- Key resistance lies at $365, with potential breakout or pullback depending on upcoming earnings and product developments.
The recent upward movement continues Tesla’s rally off the lows set in early April, when the stock dipped below $220 following sharp criticism of CEO Elon Musk’s political alignments and ongoing trade policy uncertainties. From a technical standpoint, Tesla has reclaimed its 50-day and 200-day moving averages, both of which now act as dynamic support levels. This recovery suggests a shift in sentiment among short-term traders, and the moving average crossover implies bullish momentum may persist in the near term. The stock’s Relative Strength Index (RSI) currently stands near 58, rising from deeply oversold conditions, and points to growing buying interest without signaling overbought status just yet.
TSLA stock price dynamics (April 2025 - June 2025). Source: TradingView
However, key resistance levels remain overhead. The first is at $365, which marks the upper boundary of a previously failed rising wedge pattern and has historically served as a reversal point. A more significant resistance zone lies near $430, just below Tesla’s all-time high, representing a formidable psychological and technical barrier for bulls. On the downside, Tesla has established short-term support at $265, with more critical support at $215, where the stock formed a base during its Q1 consolidation phase. Breaches below these levels could signal bearish trend continuation and expose the stock to deeper corrections.
Political tensions and soft demand temper optimism
Tesla’s recent price strength comes as broader equity markets show signs of stabilization, and investor attention shifts toward Tesla’s next major product event — the anticipated reveal of its robotaxi platform. Optimism around AI and automation has helped buoy sentiment, especially as Tesla continues to promote its Full Self-Driving (FSD) suite and neural net-based driver assistance technologies.
Nevertheless, macro and company-specific challenges continue to weigh on the longer-term outlook. Chief among them is the high-profile public spat between Elon Musk and President Donald Trump. While the market appears to be pricing in a degree of resilience in Tesla’s fundamentals, Musk’s political activity has led to reputational risks that could affect consumer sentiment and institutional support. This was underlined by two major analyst downgrades from Argus Research and Baird, which cited reputational overhang and reduced international demand as major concerns.
Sales data from Europe further underscore these headwinds. Tesla’s European sales have shown consistent monthly declines since January 2025, with April reporting a 49 percent drop year-over-year. Germany, one of Tesla’s strongest European markets, saw a sharp contraction in demand as local automakers intensified electric vehicle competition and regulatory scrutiny increased.
Sideways action before potential directional breakout
Looking ahead, Tesla is likely to trade in a broad range between $265 and $365 as investors await further clarity on both the company’s operational performance and macroeconomic signals. The next decisive catalyst may come from Q2 earnings in July, as well as the robotaxi launch, which could shift investor focus back to Tesla’s innovation narrative.
A clean breakout above $365, accompanied by volume and a shift in RSI above 70, could signal the beginning of a new bullish phase with upside potential toward $430. However, this would require strong confirmation from earnings or product execution. On the other hand, failure to hold the $265 support would open up downside risks to $215, where long-term value buyers may again step in.
Baird downgraded Tesla to "Neutral," warning that enthusiasm over the robotaxi launch and AI advancements may already be priced in. At the same time, ARK Invest has trimmed its Tesla holdings, reflecting declining institutional confidence in the stock's near-term performance.
