Why Did Tesla Stock Jump 10% This Week?

By Howard Smith | November 28, 2025, 11:03 AM

Key Points

Tesla's European sales plunged nearly 50% in October.
CEO Elon Musk wants investors to focus on the company's AI plans.
These 10 stocks could mint the next wave of millionaires ›

Lagging electric vehicle (EV) sales have continued for Tesla (NASDAQ: TSLA). This week, data from the European Automobile Manufacturers' Association showed that the EV maker's European sales plunged 48.5% in October compared to the same period last year.

That new sales data didn't hurt Tesla stock, though. Shares have jumped 9.8% this week alone, as of late-morning Friday trading, according to data provided by S&P Global Market Intelligence. That's because CEO Elon Musk has investors focusing on something other than EV sales.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »

Image source: Tesla.

Tesla, the AI company

That October sales data wasn't a fluke. Tesla is clearly losing market share globally. Tesla sales in Europe have dropped 30% this year, even as overall EV sales jumped 26% in the region. Yet the stock is surging this week after CEO Elon Musk provided some insight into the company's artificial intelligence (AI) technology.

Musk has directed significant investments at Tesla into AI technology. He has even told investors not to own the stock if they don't believe in Tesla's future in autonomous driving and robotics. Last weekend, Musk posted on social media about Tesla's advances in in-house AI chips.

He said Tesla engineers have already designed and deployed millions of AI chips across its vehicles and data centers. He added that it is finalizing its newest AI5 chip. The company is also already working on its next-generation AI6 chip.

Similar to a cadence that AI leader Nvidia has previously announced, Musk stated that Tesla aims to introduce updated chip designs into production at volume every 12 months. That has investors believing Tesla is the technology company that Musk has touted, rather than just an automaker. Its potential success in robotics and autonomous driving technologies has investors buying Musk's view this week.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $467,519!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $52,801!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $572,405!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of November 24, 2025

Howard Smith has positions in Nvidia and Tesla and has the following options: short February 2026 $170 calls on Nvidia. The Motley Fool has positions in and recommends Nvidia and Tesla. The Motley Fool has a disclosure policy.

Mentioned In This Article

Latest News