TLDR
- Tesla stock ended three consecutive weekly gains as shares declined
- European sales dropped 40% year-over-year with major declines in France (-47%) and Sweden (-84%)
- Norway emerges as success story with Tesla becoming top-selling brand and 22% sales growth
- Musk unveiled Master Plan Part IV focusing on AI, robotics, and Optimus humanoid robot
- Chinese competitor BYD continues gaining European market share, outselling Tesla in July
Tesla stock broke its recent winning streak last week, ending three consecutive weeks of gains as investors digested mixed global performance data and the company’s latest strategic direction.
The electric vehicle maker faces contrasting fortunes across European markets. While Tesla dominates in Norway, broader European sales paint a concerning picture for investors.
European Market Struggles Intensify
Tesla’s European performance deteriorated in recent months with overall sales dropping 40% year-over-year in July. France saw new registrations fall 47% in August, while Sweden experienced a steeper 84% decline during the same period.
Chinese competitors are capitalizing on Tesla’s struggles. BYD has rapidly gained market share across Europe, offering affordable electric models that appeal to cost-conscious consumers.
BYD outsold Tesla in Europe during July for the second time in six months this year. The Chinese automaker’s European sales have surged throughout 2025 as it expands its regional presence.
Growing competition from multiple Chinese brands has pressured Tesla’s market position. These competitors offer diverse electric vehicle options at various price points.
Norway Success Story Continues
Tesla found remarkable success in Norway, where electric vehicles dominate the automotive market. Battery-powered vehicles comprised 97% of Norway’s new car sales in August.
Tesla became the top-selling car brand of any kind in Norway this year. The company’s August sales in Norway jumped nearly 22% compared to the previous year, with one in five cars sold being a Tesla.
Spain and Portugal also showed positive momentum for Tesla last month. These markets provided additional bright spots in an otherwise challenging European landscape.
Even BYD performed well in Norway, with sales rising nearly 150% year-over-year in August. The market’s electric vehicle adoption rate benefits multiple manufacturers.
Master Plan Part IV and Investor Skepticism
Elon Musk released Master Plan Part IV late Monday, focusing on artificial intelligence and robotics. The plan centers heavily on Tesla’s Optimus humanoid robot, which remains in development with limited public demonstrations.
Musk claims Optimus could represent nearly 80% of Tesla’s future company value. He described scaling both Optimus and full self-driving software as key factors in achieving the new roadmap.
The plan promises “sustainable abundance” through integrated systems spanning electric vehicles, solar power, battery storage, and humanoid robots. Tesla emphasized making advanced products affordable and available at scale.
Previous master plans remain incomplete, with Part II from 2016 still unfinished. Part III focused on scaling but coincided with Tesla’s peak EV sales in 2023, which have since declined.
Retail investor sentiment on Stocktwits turned bearish despite normal message volume. Some investors expressed fatigue with Tesla’s strategic announcements and questioned the credibility of new promises.
One Stocktwits user warned that Tesla’s stock had been riding broader market momentum and could face severe declines without company-specific catalysts if market sentiment turns negative.
BYD’s European sales surge nearly 150% year-over-year in August, demonstrating the competitive pressure Tesla faces in key international markets.
