... Trade Reviews Tesla between U.S. market hype and Europe bleeding market

Tesla between U.S. market hype and Europe bleeding market

This year, Tesla finds itself at a turning point. On one hand, its ambitions, beyond cars, AI chips, autonomous driving, robotaxis, are gaining traction and investor attention. On the other hand, traditional metrics like vehicle deliveries and European sales are under pressure. The result: a company straddling two futures.

By Yazeed Abu Summaqa | @Yazeed Abu Summaqa | 28 November 2025

Deliveries and revenue have come under pressure.
Funds have recently increased their Tesla holdings, signaling belief in the long-term.
If momentum continues, a wider long-term target around $520–$530.

Strong momentum, but Growing Pressure

U.S. buyers snapping up EVs before expiration of a $7,500 tax credit. But it’s not all smooth sailing. In Europe the company is bleeding market share new vehicle registrations plunged nearly 50% in October compared to last year, continuing a long slide in several key European markets. Competition has increased, and consumer sentiment has cooled, partly due to strong rivals and negative publicity around leadership. At the same time deliveries and revenue have come under pressure. Some quarters have seen revenue declines and shrinking automotive revenue, while Tesla tries to balance production updates, price adjustments, and shifting demand. Financially the picture is mixed growth remains, but margins are squeezed by elevated costs, R&D spending, and increased competition. Some analysts warn that recent gains may be more about hype than stable fundamentals.

Investor Sentiment

Bullish analysts calling Tesla a “must own” on the strength of its AI, autonomy, and long-term vision on the other side are skeptical voices warning that the “hype” may be overdone, and that real world demand (especially outside the U.S.) is shrinking. Institutional investors are also active some funds have recently increased their Tesla holdings, signaling belief in the long-term upside, the result of all these information’s coming into the market high volatility. Tesla stock may see sharp swings as markets react regulatory developments, and updates on FSD or robotaxi progress. Tesla right now is less a traditional automaker and more a hybrid tech mobility AI company. Its bets on AI chips, autonomous driving, and robotaxis could if executed well redefine its value proposition entirely.

Technical outlook

TSLA bounces from a trend line and facing strong resistance at $426.80, if the price breaks the resistance and trades above it, we could see the price continue the rally towards $475, the resistance level is $488.18 if any breaks happen and the price stayed above the resistance level the target could be for long term is $640.