Tesla (NASDAQ: TSLA) Stock prices have soared in recent weeks. The stock is up more than 60% in the past month and that increase continued on Friday. Tesla shares were up 3.7% as of 1:45 p.m. ET. That brings the year-to-date gain to about 42%.
Much of the recent euphoria relates to CEO Elon Musk and his relationship with newly elected President Donald Trump. But the stock’s momentum may also have been boosted after the latest European electric vehicle (EV) sales figures were published yesterday.
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European EV sales rose about 7% year-on-year in October, according to the European Automobile Manufacturers’ Association. That bodes well for Tesla for several reasons. First, the increase in registrations of fully electric cars compares with flat results for all energy sources, including hybrids and fossil fuel vehicles. And the increase in battery electric vehicle registrations in October compares with a 2.6% decline in 2024 through September.
And Tesla in particular has seen growing sales over the past two months. For all of Europe, including Great Britain, Tesla sold more than 58,000 electric vehicles combined in September and October. That’s an increase of 11.6% in just those two months compared to 2023. Still, total sales in 2024 through October were still nearly 12% lower for Tesla in Europe. Demand has increased significantly recently.
That’s a good sign as investors prepare to see what Tesla sales will look like globally in 2024. Europe is an important market for Tesla with its German production plant and increasing competition from both European and Asian EV manufacturers.
Investors would like to see Tesla show accelerating sales by the end of the year. Especially since Musk is in a position to help guide the new administration’s policies regarding electric vehicles. The recovery in Europe over the past two months has been encouraging and is helping to keep Tesla’s stock momentum going.
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Howard Smith has positions in Tesla. The Motley Fool holds and recommends positions in Tesla. The Motley Fool has a disclosure policy.
Why Tesla Stock Ended the Week on a High was originally published by The Motley Fool
