Tesla shares climbed around 5% on Tuesday after CEO Elon Musk reiterated his intention to refocus on his core companies — Tesla, X, and xAI — following a weekend marred by a service disruption at his social media platform.
Musk posted on X that he needs to be “super focused” as these companies prepare to launch what he described as “critical technologies.”
The stock was up around 4.6% to trade at $355.05 in the early hours of trading on Tuesday.
Replying to @xDaily
Back to spending 24/7 at work and sleeping in conference/server/factory rooms.
I must be super focused on 𝕏/xAI and Tesla (plus Starship launch next week), as we have critical technologies rolling out.
As evidenced by the 𝕏 uptime issues this week, major operational
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The surge in the TSLA stock comes even as UBS analyst Joseph Spak reiterated a Sell rating on Tesla with a $190 price target, pointing to waning consumer interest in the automaker and the broader EV sector across key regions.
Spak cited market saturation, limited product diversity, and pricing constraints in the US; intensifying competition in China; and potential brand damage in Europe tied to CEO Elon Musk’s political stance as primary concerns.
In contrast, TD Cowen analysts on Tuesday reaffirmed a Buy rating on Tesla shares, maintaining a $330 price target.
The firm remains bullish on Tesla’s autonomous vehicle (AV) ambitions, arguing that its capabilities extend well beyond ridesharing.
They expect Tesla’s AV technology to open up new revenue channels and drive additional market share in the consumer vehicle segment, potentially offsetting current demand concerns.
Musk to move away from politics
Musk’s remarks reflect a broader pivot away from political engagement.
During Tesla’s April earnings call, he said he would “significantly” reduce his time running President Donald Trump’s Department of Government Efficiency.
In the previous election cycle, Musk had devoted substantial resources to political activities, including supporting Trump’s 2024 campaign.
However, a recent report by The Washington Post, citing unnamed sources, suggested that Musk has become disillusioned with politics and is now prioritizing his business operations.
Tesla’s European sales under pressure
Despite the surge in Tesla’s stock price, the company continues to face serious challenges in Europe.
Sales of Tesla vehicles in the region fell 49% year-on-year in April to 7,261 units, according to the European Automobile Manufacturers’ Association (ACEA).
This drop comes even as overall battery electric vehicle sales in Europe rose by over 34% during the same period.
Tesla’s brand has taken a hit in Europe, in part due to Musk’s political affiliations, with dealership protests erupting in several countries earlier this year.
For the January–April period, Tesla’s European sales are down nearly 40% year-on-year.
The company has introduced an upgraded version of the Model Y SUV, but its broader lineup remains largely unchanged.
Meanwhile, Tesla faces intensifying competition from legacy automakers and aggressive Chinese EV manufacturers.
Notably, BYD outsold Tesla in Europe in pure EV sales last month, marking a significant shift in the competitive landscape.
Compounding the challenge, European consumers are increasingly favoring hybrid vehicles, which accounted for just over 35% of the region’s auto market in April.
Tesla does not currently offer any hybrid models, focusing exclusively on fully electric vehicles.
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