Tesla's share value concluded the week on an upward trajectory.
Tesla's (TSLA) shares have been soaring lately, with a rise of over 60% in the past month. This surge continued on Friday, with Tesla shares climbing by 3.7% as of 1:45 p.m. ET. This brings year-to-date gains to approximately 42%.
Much of this enthusiasm can be attributed to CEO Elon Musk and his relationship with President-elect Donald Trump. However, the stock's growth may also be boosted by the latest European electric vehicle (EV) sales figures, which were released yesterday.
EV Sales Rebound
EV sales in Europe increased by around 7% year-over-year in October, as per the European Automobile Manufacturers' Association. This is significant in several ways. Firstly, the increase in fully electric car registrations outpaces the overall stagnation in sales for all power sources, including hybrids and fossil fuel vehicles. Secondly, the rise in battery electric vehicle registrations is even more notable, given the 2.6% drop in EV sales from January to September of this year.
Moreover, Tesla has seen a surge in sales over the last two months. In September and October alone, Tesla sold over 58,000 EVs in Europe, marking a 11.6% increase compared to the same period in 2023. However, overall sales for Tesla in Europe through October are still down by nearly 12%. This recent surge in demand is a positive sign, particularly as investors look forward to seeing Tesla's global sales figures for 2024.
Europe is a crucial market for Tesla, with its German manufacturing plant and increasing competition from both European and Asian EV manufacturers. A strong performance in Europe could be a significant boost for Tesla's stock momentum.
Investors would be delighted to see Tesla's sales picking up towards the end of the year. With Musk in a position to influence the incoming administration's policies on electric vehicles, any positive news from Europe is welcomed. The past two months' rebound in EV sales in Europe is encouraging and is helping to keep Tesla's stock price trending upward.
Investors are likely to allocate more money towards Tesla, considering its impressive performance in the European electric vehicle market. The surge in Tesla's EV sales in Europe, with over 58,000 vehicles sold in September and October, has significantly contributed to its finance and investing opportunities.
