Tesla (TSLA -1.25%) shares are quickly rebounding from a drop last week. The stock fell 3% last week, ending a four-week winning streak. It's starting the week off strong, though.
Shares jumped over 5% early Tuesday morning, even as data from Europe shows its electric vehicle (EV) sales continue to slump. As of 10:40 a.m. ET, Tesla stock is still trading up by 4.9%.
Image source: Tesla.
Elon Musk plans to refocus on Tesla
According to the European Automobile Manufacturers' Association, registrations for new Tesla EVs in Europe plunged 49% in April compared to last year. That came despite a 34% surge in overall battery electric car sales there.
Investors knew that sales have been struggling, but the declines may be accelerating. Tesla sales in Europe for the first four months of 2025 have dropped 39%. At the same time, Chinese EV maker BYD slashed prices on several of its models over the weekend. China is also an important market for Tesla, and a price war there would only hurt sales and margins.
With all that troubling news, why would investors be pouring into Tesla stock today? The answer is CEO Elon Musk. Musk himself may be the cause of some of Tesla's sales troubles. His dive into politics has been divisive and created protests against Tesla products. Competition in the EV space has also significantly ramped up, giving consumers more choices.
Musk said on social media over the weekend that he will be refocusing on his businesses, though, spending less time in Washington, D.C. He posted over the weekend "Back to spending 24/7 at work and sleeping in conference/server/factory rooms." Musk said he would be "super focused," as Tesla and his other companies have important new technologies coming out.
Tesla continues to be a story stock as investors bet on its autonomous driving technology and robotics segment to eventually drive big profits. So Musk being seemingly ready to focus on leading the company has investors feeling more bullish today.
