Tesla Sales Plummet. The Stock Rises Despite a Global Headache.

Coming into Friday trading, Tesla stock was up about 11% year to date. (Thibaut Durand / Hans Lucas / AFP / Getty Images)

Key Points

• Tesla’s sales in November reached a three-year low, according to data from Cox Automotive.
• European sales for Tesla through October decreased by 30% compared with 2024, totaling 180,688 cars.
• Tesla’s sales in China were down approximately 6% year over year through November, facing increased competition.

Tesla has had a tough year. It has competition problems in China, political problems in Europe, and policy problems in the U.S. Despite all that, the stock has been resilient—even after continued signs of slumping sales.

Tesla’s sales in November dropped to a three-year low, Reuters reported after Thursday’s close citing data provider Cox Automotive. Still, Tesla stock was up 3% at $460.22, while the S&P 500 and Dow Jones Industrial Average were down 0.2% and up 0.3%, respectively.

Not have slumping sales been all that much of a problem for Tesla stock this year. Coming into Friday trading, shares were up 11% so far in 2025, lagging the S&P 500, but still solidly higher.

Tesla stock has ground out that gain despite some significant headwinds in the car business. Investors knew the end of the year would be rough. EV sales have slumped since President Donald Trump removed the $7,500 federal EV purchase tax credit at the end of September.

Tesla has a problem outside the U.S. as well. Through October, the company sold 180,688 cars in Europe, down 30% compared with 2024.

CEO Elon Musk’s battles with European politicians aren’t likely helping sales and might have hurt them. Musk recently tweeted that the “EU Commission should be disbanded.”

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Competition is a factor, too. Through October, China’s BYD has sold 138,390 cars in Europe, up 285% year over year.

Competition in China has also hurt. Through November, Tesla’s sales were down about 6% year over year. Tesla is likely to have its first down year in China ever, and its second consecutive down year globally.

The data concerning cars isn’t great. Investors, however, just aren’t that focused on EVs right now. They have moved on to AI. Tesla uses AI computing to train cars to drive themselves and train humanoid robots to complete useful tasks. Tesla started a robo-taxi business in June. It could be selling some robots as soon as 2026.

AI businesses hold the promise of significant future earnings. That’s enough for investors right now.

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