Tesla Breaks 13-Month Losing Streak in Europe
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy TSLA?
Source: Benzinga
- Registration Data Rebound: Tesla has shown a significant recovery in European registration data, with France up 55% year-over-year, Spain surging 74%, and Norway achieving 1,210 registrations, a 75.6% increase from 689 units sold in February 2025, indicating strong performance in key markets.
- Model Impact: The Model Y excelled in Norway with 1,073 units sold, representing nearly 89% of Tesla's total sales, demonstrating that the introduction of new models effectively boosted market demand, despite declines of 45% and 18% in the Netherlands and Denmark, respectively.
- Pricing Strategy: Tesla's rollout of cheaper versions of the Model Y and Model 3 late last year, with the Model Y Standard starting at $39,990, may be a key factor driving the sales rebound, although the market remains cautious about Q1 delivery numbers.
- Market Expectation Divergence: Despite the positive registration data, traders on Polymarket are bearish on Q1 deliveries, estimating a 65% probability that Tesla will deliver fewer than 350,000 vehicles globally, contrasting with analysts' views on Tesla's future value, highlighting ongoing market uncertainty regarding Tesla's trajectory.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy TSLA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 403.320
Low
25.28
Averages
401.93
High
600.00
Current: 403.320
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Tesla Doubles Down on AI Investment Amid Risks and Opportunities
- Increased Capital Expenditure: Tesla plans to more than double its capital expenditures from $8.5 billion to $20 billion in 2023, focusing on AI, robotics, and driverless technologies, reflecting the company's ambitious growth strategy but also introducing higher operational risks.
- Product Line Shift: The company will cease production of Model S and X vehicles to focus on manufacturing Optimus robots at its California factory, marking a significant strategic pivot that could impact the profitability of its EV business.
- Market Valuation Pressure: With Tesla trading at nearly 400 times its trailing earnings, investor expectations for future growth are extremely high, and failure to meet these expectations could lead to a significant sell-off in the stock, increasing investment risks.
- Long-Term Development Goals: Musk aims to launch Optimus robots to the public by 2027, and while this vision holds potential, the risks associated with the transition could adversely affect the company's short-term financial performance.
See More
Charlie Munger Exits BYD Before Sales Decline
- Significant Investment Return: Charlie Munger invested $230 million in BYD in 2008 for a 10% stake, marking it as a successful investment for Berkshire Hathaway; however, the firm began exiting its position in 2022 and fully sold its stake by Q3 2025, just before a sales decline.
- Sales Decline Raises Concerns: According to Trung Phan on social media, BYD's sales dropped in the first two months of 2026, raising widespread market concern, particularly from Tesla CEO Elon Musk, who expressed worries about the trend.
- Market Sensitivity: Munger noted in an interview that he had never made a better investment at Berkshire than BYD, highlighting the company's influence in the EV market, yet the sales decline could impact its future market performance.
- Strategic Exit Timing: Berkshire's exit coincided with BYD's sales drop, indicating investors' sensitivity to market dynamics and risk aversion, which may affect other investors' confidence and market expectations.
See More
Bank of America Reinstates Buy Rating on Tesla
- Market Leadership: Bank of America reinstates a Buy rating on Tesla (TSLA), identifying it as the current leader in consumer autonomy, with expectations that Tesla will quickly become a leader in robotaxi services, thereby driving transformative changes in mobility that enhance consumer efficiency and safety.
- Rapid Expansion Plans: Tesla is set to scale its robotaxi services quickly this year, currently operating in San Francisco and Austin, with plans to enter seven additional markets in the first half of the year, showcasing its robust expansion capabilities in the autonomous driving sector.
- Cost Advantage Strategy: Tesla's camera-only approach, while technically challenging, is significantly cheaper than competitors, leveraging a consumer-fleet data engine that allows for higher profitability in the robotaxi market compared to traditional rideshare players.
- Market Valuation Outlook: Bank of America sets a price target of $460 for Tesla based on a sum-of-the-parts analysis, reflecting an optimistic outlook on its future growth potential, while the valuation of Tesla's Optimus humanoid segment exceeds $30 billion, further bolstering market confidence.
See More
Musk Optimistic About Tesla's AI and Robotics Future
- AGI Development Outlook: Musk stated on social media that Tesla will be among the companies developing Artificial General Intelligence (AGI) and could be the first to achieve humanoid/atom-shaping AGI, reflecting his strong confidence in the company's AI efforts and potential to lead industry transformation.
- Robotics Production Goals: Tesla plans to produce the Optimus humanoid robot at its Fremont, California facility, targeting an annual output of 1 million units, showcasing the company's ambition in robotics and potentially providing critical technological support for future space colonization.
- Optimus Academy Concept: Musk mentioned the establishment of an “Optimus Academy” to train the robot using Tesla's reality generator, which will enhance the robot's intelligence and further solidify Tesla's leadership in automation and AI.
- Market Performance Analysis: Despite Tesla's stock price dropping 2.98% to $392.43 at Tuesday's close, it rebounded by 1.20% to $397.15 in pre-market trading on Wednesday, indicating market confidence in its long-term growth potential, particularly driven by advancements in AI and robotics.
See More
Tesla's Autonomous Driving and Robotaxi Services Set for Growth, Says Bank of America
- Buy Rating Reinstated: Bank of America has reinstated coverage of Tesla with a buy rating, setting a price target of $460, which implies a 17% upside; despite a 13% decline in shares this year, the stock has risen 44% over the past 12 months, reflecting market confidence in its growth potential.
- Leadership in Autonomous Driving: Analyst Alexander Perry views Tesla as a leader in autonomous driving and expects its robotaxi services to scale rapidly, becoming a significant driver of future mobility and offering consumers safer and more accessible transportation options.
- Significant Technical Advantage: Tesla's camera-only approach, while technically challenging, is cheaper and leverages consumer fleet data, allowing for more profitable scaling of its robotaxi services compared to competitors, providing a clear cost advantage over rideshare companies.
- Diverse Business Prospects: Perry also highlights the potential of Tesla's Optimus humanoid robots and energy business, valuing them at over $30 billion and $90 billion respectively, with future applications in manufacturing and households, further enhancing the company's growth trajectory.
See More
Tesla Pursues Artificial General Intelligence Technologies
- Capital Expenditure Surge: Tesla anticipates capital expenditures exceeding $20 billion in 2026, a significant increase from $8.5 billion in 2025, which will support the production of the Cybercab, Tesla Semi, and Optimus robots, highlighting the company's ambitions in the EV and robotics sectors.
- AGI Development Vision: Musk stated that Tesla is committed to developing Artificial General Intelligence (AGI) capable of performing various human cognitive tasks, aiming for a breakthrough by 2026, leveraging its robust computing resources and real-world driving data.
- Optimus Robot Progress: Tesla plans to launch an updated version of the Optimus model in Q1 this year and aims to begin manufacturing by year-end, with Musk emphasizing that the robot will learn by observing human behavior, enhancing its application range and market competitiveness.
- Positive Market Reaction: Tesla's stock rose over 1% in Wednesday's premarket trading, with retail sentiment shifting from 'extremely bullish' to 'bullish', reflecting market confidence in Tesla's future developments.
See More
Tesla Doubles Down on AI Investment Amid Risks and Opportunities
- Increased Capital Expenditure: Tesla plans to more than double its capital expenditures from $8.5 billion to $20 billion in 2023, focusing on AI, robotics, and driverless technologies, reflecting the company's ambitious growth strategy but also introducing higher operational risks.
- Product Line Shift: The company will cease production of Model S and X vehicles to focus on manufacturing Optimus robots at its California factory, marking a significant strategic pivot that could impact the profitability of its EV business.
- Market Valuation Pressure: With Tesla trading at nearly 400 times its trailing earnings, investor expectations for future growth are extremely high, and failure to meet these expectations could lead to a significant sell-off in the stock, increasing investment risks.
- Long-Term Development Goals: Musk aims to launch Optimus robots to the public by 2027, and while this vision holds potential, the risks associated with the transition could adversely affect the company's short-term financial performance.
See More
Charlie Munger Exits BYD Before Sales Decline
- Significant Investment Return: Charlie Munger invested $230 million in BYD in 2008 for a 10% stake, marking it as a successful investment for Berkshire Hathaway; however, the firm began exiting its position in 2022 and fully sold its stake by Q3 2025, just before a sales decline.
- Sales Decline Raises Concerns: According to Trung Phan on social media, BYD's sales dropped in the first two months of 2026, raising widespread market concern, particularly from Tesla CEO Elon Musk, who expressed worries about the trend.
- Market Sensitivity: Munger noted in an interview that he had never made a better investment at Berkshire than BYD, highlighting the company's influence in the EV market, yet the sales decline could impact its future market performance.
- Strategic Exit Timing: Berkshire's exit coincided with BYD's sales drop, indicating investors' sensitivity to market dynamics and risk aversion, which may affect other investors' confidence and market expectations.
See More
Bank of America Reinstates Buy Rating on Tesla
- Market Leadership: Bank of America reinstates a Buy rating on Tesla (TSLA), identifying it as the current leader in consumer autonomy, with expectations that Tesla will quickly become a leader in robotaxi services, thereby driving transformative changes in mobility that enhance consumer efficiency and safety.
- Rapid Expansion Plans: Tesla is set to scale its robotaxi services quickly this year, currently operating in San Francisco and Austin, with plans to enter seven additional markets in the first half of the year, showcasing its robust expansion capabilities in the autonomous driving sector.
- Cost Advantage Strategy: Tesla's camera-only approach, while technically challenging, is significantly cheaper than competitors, leveraging a consumer-fleet data engine that allows for higher profitability in the robotaxi market compared to traditional rideshare players.
- Market Valuation Outlook: Bank of America sets a price target of $460 for Tesla based on a sum-of-the-parts analysis, reflecting an optimistic outlook on its future growth potential, while the valuation of Tesla's Optimus humanoid segment exceeds $30 billion, further bolstering market confidence.
See More
Musk Optimistic About Tesla's AI and Robotics Future
- AGI Development Outlook: Musk stated on social media that Tesla will be among the companies developing Artificial General Intelligence (AGI) and could be the first to achieve humanoid/atom-shaping AGI, reflecting his strong confidence in the company's AI efforts and potential to lead industry transformation.
- Robotics Production Goals: Tesla plans to produce the Optimus humanoid robot at its Fremont, California facility, targeting an annual output of 1 million units, showcasing the company's ambition in robotics and potentially providing critical technological support for future space colonization.
- Optimus Academy Concept: Musk mentioned the establishment of an “Optimus Academy” to train the robot using Tesla's reality generator, which will enhance the robot's intelligence and further solidify Tesla's leadership in automation and AI.
- Market Performance Analysis: Despite Tesla's stock price dropping 2.98% to $392.43 at Tuesday's close, it rebounded by 1.20% to $397.15 in pre-market trading on Wednesday, indicating market confidence in its long-term growth potential, particularly driven by advancements in AI and robotics.
See More
Tesla's Autonomous Driving and Robotaxi Services Set for Growth, Says Bank of America
- Buy Rating Reinstated: Bank of America has reinstated coverage of Tesla with a buy rating, setting a price target of $460, which implies a 17% upside; despite a 13% decline in shares this year, the stock has risen 44% over the past 12 months, reflecting market confidence in its growth potential.
- Leadership in Autonomous Driving: Analyst Alexander Perry views Tesla as a leader in autonomous driving and expects its robotaxi services to scale rapidly, becoming a significant driver of future mobility and offering consumers safer and more accessible transportation options.
- Significant Technical Advantage: Tesla's camera-only approach, while technically challenging, is cheaper and leverages consumer fleet data, allowing for more profitable scaling of its robotaxi services compared to competitors, providing a clear cost advantage over rideshare companies.
- Diverse Business Prospects: Perry also highlights the potential of Tesla's Optimus humanoid robots and energy business, valuing them at over $30 billion and $90 billion respectively, with future applications in manufacturing and households, further enhancing the company's growth trajectory.
See More
Tesla Pursues Artificial General Intelligence Technologies
- Capital Expenditure Surge: Tesla anticipates capital expenditures exceeding $20 billion in 2026, a significant increase from $8.5 billion in 2025, which will support the production of the Cybercab, Tesla Semi, and Optimus robots, highlighting the company's ambitions in the EV and robotics sectors.
- AGI Development Vision: Musk stated that Tesla is committed to developing Artificial General Intelligence (AGI) capable of performing various human cognitive tasks, aiming for a breakthrough by 2026, leveraging its robust computing resources and real-world driving data.
- Optimus Robot Progress: Tesla plans to launch an updated version of the Optimus model in Q1 this year and aims to begin manufacturing by year-end, with Musk emphasizing that the robot will learn by observing human behavior, enhancing its application range and market competitiveness.
- Positive Market Reaction: Tesla's stock rose over 1% in Wednesday's premarket trading, with retail sentiment shifting from 'extremely bullish' to 'bullish', reflecting market confidence in Tesla's future developments.
See More
