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Tesla's Stock Price shows bullish technical signals but faces pressure from falling global vehicle deliveries.
Electric vehicle demand is rising, yet Tesla’s market share is slipping in Europe and China amid fierce competition.
Artificial Intelligence and self-driving ambitions remain Tesla’s biggest long-term growth drivers despite near-term risks.
Tesla stock price currently stands at around $345.98 as of August 29, 2025. The stock has slipped slightly by about 0.01% from the previous close. In pre-market trading, it is priced around $342.83, which shows cautious investor sentiment heading into the session. Even though this decline is not very steep, it highlights the uncertainty surrounding Tesla’s short-term performance. Investors are carefully watching every move, as the company is at a turning point in terms of both its sales performance and its long-term strategies.
Analysts remain divided on Tesla’s outlook. The consensus rating is currently “Hold”, with an average 12-month price target of $301.93. This represents a downside risk of nearly 12.7% compared with the present price level. This cautious target reflects concerns about sales declines in key regions and increasing competition in the electric vehicle space.
Not all analysts are negative, however. Some retain long-term optimism, especially around Tesla’s push into artificial intelligence and robotics. For example, RBC’s Tom Narayan continues to rate the stock a “Buy”, pointing out that Tesla’s AI ambitions, if successful, could transform the company’s valuation dramatically. Still, the challenge lies in the fact that AI and robotics are long-term plays, and near-term risks remain tied to traditional vehicle sales and profit margins.
On the technical front, Tesla stock has been showing encouraging chart patterns. Recently, the company’s shares formed a cup-with-handle breakout pattern, which is generally seen as a bullish indicator. The stock rose about 14% in August, crossing above an important buy point at $348.98 and reaching levels around $351.67.
Earlier in the year, the stock also formed a long base pattern that lasted more than four years. Such a setup often signals the possibility of a strong rally once a breakout occurs. Technical traders see this as a reason for optimism, even if fundamental data such as vehicle deliveries is showing weakness. This reflects a common trend in Tesla’s history—where enthusiasm about future technologies often outweighs immediate business challenges.
Also Read - Tesla Stock: Is it a Buy, Hold, or Sell Now?
Tesla’s European sales figures have been disappointing. In July 2025, the company sold only 8,837 vehicles across Europe, marking a steep 40% drop year-on-year. As a result, Tesla’s European market share has fallen sharply, from around 11% to about 5%.
This decline marks the seventh consecutive month of sales contraction in Europe. Several factors are contributing to the problem. Firstly, competition in the European electric vehicle market has intensified, with traditional automakers and new entrants offering attractive alternatives. Secondly, Tesla has faced regulatory delays and growing public criticism in Europe, partly due to the outspoken behavior of its chief executive. These issues have combined to put Tesla under pressure in one of the world’s most important EV markets.
Tesla’s challenges are not limited to Europe. In the first half of 2025, the company delivered 720,803 vehicles, which represents a 13% decline compared with the same period in 2024. This figure has raised concerns as overall demand for electric vehicles continues to rise worldwide, yet Tesla is struggling to maintain its momentum.
In China, Tesla’s second-largest market, the trend is also worrying. Weekly vehicle registrations dropped by about 12% recently. To counter this, Tesla launched a new six-seat version of its Model Y Long Range, priced around $47,180. While the launch may help refresh interest, it remains to be seen whether it will reverse the broader slowdown in the region.
Despite the sales pressure, Tesla is actively repositioning itself as more than just an electric car company. Artificial intelligence and autonomous mobility are at the heart of this strategy. In June 2025, Tesla launched a self-driving taxi service in Austin, which added momentum to its stock. Since the company first announced this project in October 2024, Tesla’s share price has gained about 46%, showing the strong influence of new technologies on investor sentiment.
Tesla has also shifted its approach to autonomous driving hardware. Earlier, the company was working on its in-house supercomputer project called Dojo. However, that project has been scaled down, and Tesla now appears to be leaning more on Nvidia’s new Thor system-on-chip (SoC) to power future self-driving systems. Nvidia’s automotive revenue jumped 69% year-over-year in the second quarter of 2025, underlining the scale of demand for such technology. For Tesla, this partnership could provide a reliable foundation for its Hardware 5 and Hardware 6 self-driving systems, which are expected to be more advanced than current versions.
Tesla is no longer alone in the EV industry. Competitors such as BYD are rapidly expanding in Europe and China. In July, BYD’s European registrations rose by an astonishing 225%, highlighting the growing challenge Tesla faces. While Tesla’s sales fell, rivals used the moment to expand their foothold and capture market share.
Such developments underline a crucial reality: while Tesla remains the most recognized name in EVs, it is no longer guaranteed dominance in every market. The speed at which competitors are scaling up, combined with their ability to offer lower-priced vehicles, is eroding Tesla’s relative advantage.
Tesla’s performance is also being shaped by broader global forces. In the United States, clean-tech manufacturing investment has slowed. This slowdown could hurt the overall expansion of EV infrastructure, including charging networks, which are essential for sustained adoption of electric cars.
In Europe, government policies continue to encourage EV adoption, but Tesla’s challenges show that strong demand for EVs does not automatically translate into higher sales for every company. Pricing, local partnerships, supply chains, and brand perception all matter greatly in determining success.
Tesla’s current situation presents a mixed picture. On one side, the company benefits from positive technical signals and strong investor interest in its AI and robotics ambitions. The recent breakout in stock charts and the successful launch of a self-driving taxi service highlight Tesla’s ability to excite markets with innovation.
On the other side, Tesla is facing serious headwinds in its core automotive business. Falling sales in Europe and China, along with declining global deliveries, show that the company is struggling to maintain its leadership in the EV space. Analysts’ average price target of around $301.93 indicates that many expect the stock to correct downward in the medium term, unless Tesla can reverse the sales slump.
Also Read - Tesla Shuts Down Dojo Supercomputer Project, Loses 20 Employees to DensityAI
Tesla’s stock is at a crossroads. The company is trying to transform itself into an AI-driven mobility and robotics powerhouse, and these ambitions have already boosted the stock’s valuation significantly. However, traditional car sales remain the backbone of revenue, and the current declines in key regions pose a real risk.
If Tesla succeeds in scaling its self-driving and AI operations, the stock could continue to climb despite weak fundamentals. But if sales pressure continues and competition intensifies, the downside risk toward the analyst target near $300 cannot be ruled out. The outcome will depend heavily on whether Tesla can balance its futuristic ambitions with the immediate need to stabilize its global vehicle business.
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