Tesla Stock Makes a Comeback as the Market Slips

Coming into Monday trading, Tesla stock was up about 7% year to date and up about 25% over the past 12 months. (Hans Lucas/AFP via Getty Images)

Key Points

• Tesla stock battled back from an early loss to close almost unchanged.
• Chinese electric-vehicle makers reported 106,184 deliveries in November, a 6% year-over-year increase, the slowest growth in 2025.
• Elon Musk discussed the convergence of SpaceX, Tesla, and xAI, highlighting AI-trained robots and AI-powered satellites.

Tesla stock battled back after early losses triggered by factors including a weak market and negative commentary by a famous investor.

Shares of the electric vehicle maker fell as much as 1.1%, but rebounded to close with a marginal loss of three cents at $430.14. The S&P 500 and Dow Jones Industrial Average fell 0.5% and 0.9%, respectively.

The stock was coming off a strong run at the close of November. Tesla stock gained 10% last week, which was shortened by the Thanksgiving holiday, ending the month with a loss of about 6% for the month.

Also weighing on the stock was that The Big Short’s Michael Burry called Tesla overvalued in a weekend post on his Substack.

News about Chinese EV sales was another potential negative. Shares of Chinese electric-vehicle makers Li Auto, NIO , and XPeng all fell after the companies reported November sales numbers. The trio delivered 106,184 vehicles, up 6% year over year. That was the slowest year-over-year growth in 2025.

China is the largest market for all-electric cars. Tesla doesn’t report regional or monthly sales, leaving investors to rely on data from industry associations. Through October, Tesla delivered about 464,000 cars in China, down about 7% year over year.

Investors also had an interview with Musk to digest, which was posted on X on Sunday. There was no bad news per se. Musk hit common themes about an age of abundance, ushered in by AI-trained robots that can do seemingly endless work for humans.

“There’s increasingly a convergence between SpaceX and Tesla and xAI,” said Musk at one point. xAI, Musk’s AI company, competes with the likes of OpenAI.)

AI-powered satellites, which SpaceX can build and put in orbit, can help power all the AI-trained cars and robots Tesla plans to build.

That statement could energize Tesla investors who also follow Musk’s other ventures closely. Tesla shareholders recently voted to essentially allow Tesla to invest directly in xAI, although that vote wasn’t binding on Tesla’s board or management.

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Musk was also asked why he likes the letter X so much. Musk runs SpaceX, xAI, and the social-media platform X, which is now part of xAI.

“Sometimes I wonder what’s wrong with me,” Musk said.

In 1999, Musk founded a financial services company and was looking for one-letter domains. He picked X, which he thought could also represent a crossroads or clearing house for money. The X in SpaceX stands for exploration. There is no X in Tesla, although the company sells the Model X SUV.

“It’s somewhat of a…coincidence,” he said.

Coming into the day, Tesla stock was up about 7% year to date and up about 25% over the past 12 months.

Write to Al Root at allen.root@dowjones.com