Tesla (NASDAQ: TSLA) has been the face of the electric vehicle (EV) revolution for a long time, but 2025 is going to be a big year for them. The company used to be an undisputable market leader, but now the competition is growing stronger every quarter.
Today, investors are looking at Tesla stock price and evaluating a strange mix of things-there’s the slow growth in core markets, powerful new competitors like BYD, cautious institutional attitude, and big bets on new technologies.
European Sales Slump vs. Market Growth
From Europe comes one of the most glaring evidence of Tesla’s changing stance. The most recent vehicles registration data shows that Tesla’s deliveries are not keeping up with the growth of the broader EV industry.
This is a bad warning because Europe has always been a key market for the company’s Model 3 and Model Y. As a result, its market share is going down as more competitors offer cheaper and more diverse models.
In the meantime, Chinese competitor BYD is in the news for the good reasons. BYD registered 13,503 vehicles across Europe in July, which translates to outstanding 225% growth from the same month last year. That’s not just growth; it’s a full-on market share gain.
Lack of New Models and Strategic Concerns
Tesla’s falling registrations point to a deeper problem: the business has failed to release new mass-market model in years and is paying for it. While the company is still relying on the Model 3 and Model Y, competitors are rushing to update their portfolios and offer smaller electric vehicles at lower prices.
Both investors and analysts are worried that Tesla stock price and growth story could be hurt by its stale product pipeline. If it doesn’t come up with new models, consumers will likely perceive it as the EV incumbent instead of the disruptor. This is a dangerous idea in an industry that changes quickly.
Bets on AI, FSD and Robotaxis
Tesla’s growth story has been intertwined by CEO Elon Musk‘s reputation for making big promises. Musk wrote on X over the weekend that the next version of Full Self-Driving (FSD), which is set to be out in September, will be two to three times “better than a human driver.” He went even further and said that version 15 could be ten times better.
These kinds of claims usually get investors excited, and could propel Tesla stock price upwards in the coming days. However, the market has been increasingly suspicious over the years because Tesla has a history of missing deadlines. FSD is still a huge potential source of income, especially as Tesla expands its robotaxi service in Austin. If the technology works as promised and authorities give the green light, the company could open up a new industry worth billions of dollars.
Humanoid Robots Could Take the Pressure Off Cars
There’s also Tesla’s humanoid robots, Optimus seen as a key growth frontier. Musk has been saying for a long time that this is a game-changing technology that might help Tesla’s AI and manufacturing to reach new markets.
he company has indicated that production is picking up. However, this is not just a new technology, but one that could be disruptive to human culture and therefore could take a while for it to gain traction with customers.
Those who don’t believe in robots think they are a distraction from Tesla’s main business. But investors who do believe in them say that if Optimus gets big enough, it may change Tesla from an automaker to an AI and robotics powerhouse.
Tesla’s Financials Signal an Underlying Weakness
The most recent earnings report gives us a better idea of where Tesla really stands. Tesla made $23.4 billion in revenue in the second quarter of 2025, which is a marginal 2% rise from the same period last year. But that growth at the top was less significant than the lower profits. Net income dropped 8% to $1.3 billion, while EPS dropped from $0.42 to $0.38.
Those numbers confirm what a lot of people were afraid of: growth is slowing, and price cuts, more competition, and rising input costs are cutting into profit margins. The figures show that the company is still growing, but not as quickly as investors had hoped.
Outlook for Q3 and Q4 2025
According to Tesla’s projections, the company’s growth will be flat to moderate in H2. Management forecasts that deliveries will perk up a bit in the third quarter as production problems get ease. That could strengthen the upside propulsion for Tesla stock price, but analysts doubt demand will increase significantly in the absence of new models coming out.
A lot will depend on how well Tesla’s bets outside of regular EV sales work out. While everyone is keeping an eye on the September introduction of FSD version 14, the deployment of robotaxis in Austin also has the potential to excite markets. Even though sales of vehicles have slowed, Tesla may be able to reverse the trend and restore the growth of its stock price if it can show real progress in autonomous driving and robotics.
But the risks are just as evident. Tesla stock price might keep going down if European sales keep declining, BYD’s momentum keeps increasing, and institutions stay wary, despite the AI-driven excitement. On the daily chart, Tesla stock price is currently above the 50 and 200-day moving average levels, but the shorter-period MA is below the longer-period MA. That signals potential struggles in the coming days.
Tesla stock price is pressured by slowing sales (especially in Europe) and rising competition from Chinese EV makers
The remaining part of Q3 will likely see Tesla register some gains, as per the company’s own estimates. It expects to register higher deliveries, with potential support for the stock from FSD 14 and robotaxi expansion in Austin, Texas.
The company is counting on AI, autonomous vehicles and humanoid robots called Optimus to drive its long-term growth.
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