TLDR
- Tesla stock rose 2.6% in premarket trading despite European sales dropping 49% in April
- The company has sold 61,320 cars in Europe through April 2025, down 39% from last year
- Stock has surged 66% over four weeks after finding support at $234-$240 levels
- Technical analysis shows potential for 13% more upside targeting $393 resistance level
- Chinese sales also declined 25% in second quarter’s first seven weeks
Tesla stock defied logic on Tuesday morning. Shares climbed 2.6% to $348.18 in premarket trading even as fresh data showed European sales crashed by nearly half.
The electric vehicle maker’s new car registrations in Europe tumbled 49% to 7,261 in April compared to the same month last year. European Union sales fell even harder, dropping 53% to 5,475 vehicles.
Through the first four months of 2025, Tesla has sold just 61,320 cars across Europe. That’s a steep 39% decline from the same period in 2024.
The April numbers cap off a brutal stretch for Tesla in its second-largest market. March sales dropped 28% in Europe, which actually looked good compared to January and February’s 43% plunge.
Tesla’s struggles aren’t limited to Europe either. Chinese sales fell about 25% year-over-year in the first seven weeks of the second quarter.
Stock Defies Fundamentals With Technical Rally
Despite the sales carnage, Tesla stock has been on a tear lately. The shares have rocketed 66% higher over just four weeks after bouncing off key support levels.
Technical analysts point to the $234-$240 range as crucial support that held firm. The stock found its footing at the 50-month exponential moving average around $234 and a key Fibonacci retracement level at $240.
From that base, Tesla broke through important resistance at $319.50. The momentum indicators look encouraging too, with the MACD histogram ticking higher for the first time in three months.
The daily chart shows a golden crossover, where the 50-day moving average crossed above the 200-day average. That’s typically viewed as a bullish signal by traders.
Potential for More Gains Ahead
Chart watchers see room for Tesla to climb another 13% to the $393 level. That would represent a key Fibonacci resistance point known as the Golden Ratio.
If Tesla can punch through $393, it would signal the end of the current correction phase. From there, a run back toward the all-time high of $488.50 becomes possible.
The weekly timeframe shows bullish momentum building. The MACD lines formed a bullish crossover while the histogram keeps trending higher.
Tesla’s relative strength index sits in neutral territory, suggesting plenty of room for more upside without hitting overbought levels.
However, some caution flags are emerging on shorter timeframes. The MACD histogram has been declining for four straight days on the daily chart.
If a pullback does occur, technical support sits at $301 and $265. Those Fibonacci levels could provide buying opportunities for investors.
Tesla stock remains down about 16% year-to-date despite the recent rally. But shares have gained roughly 43% since the company reported first-quarter earnings on April 22.
The sales declines reflect multiple headwinds facing the company. Analysts have blamed CEO Elon Musk’s political involvement in the Trump administration for hurting the brand.
A planned Model Y refresh has also created uncertainty among buyers. Trade tensions between the U.S. and China have led Chinese consumers to avoid American products.
Musk said he would step back from politics to focus more on Tesla, but that didn’t happen until after the earnings report in late April.
Tesla has reiterated plans to launch a self-driving taxi service in Austin, Texas, in June. Investors hope that new revenue stream could unlock another wave of earnings growth.
Wall Street continues to track Tesla’s Chinese sales on a weekly basis given their importance to overall results. The company’s first-quarter global sales dropped 13% year-over-year, marking the worst quarterly decline in Tesla’s history.
President Trump’s decision to delay European Union tariffs until July helped lift broader market sentiment on Tuesday. Trump had previously threatened 50% levies starting June 1.
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