Tesla Stock Struggles for Direction as Investors Question Robotaxi Expansion

Tesla shares opened slightly higher on Wednesday after another update from CEO Elon Musk, but the early move faded as traders shifted their focus back to the company’s weakening electric-vehicle performance and rising competitive pressure across global markets.

Early Lift From Musk’s Comment Fizzles Out

Tesla stock briefly gained 1.1% to $423.84 in premarket trading following Musk’s latest statement that the company’s robotaxi fleet in Austin could nearly double next month.

This sparked a short wave of optimism, continuing the trend of Musk-driven stock reactions seen throughout the week.

Earlier, Musk highlighted progress on Tesla’s in-house AI chips, which helped push the stock up nearly 7% during Monday’s broad market rebound.

Tesla launched its robotaxi service in Austin in June using a small fleet and safety operators in each vehicle. The service zone has expanded since then, and Musk’s prediction of faster scaling briefly pleased investors who increasingly view Tesla as an AI-focused technology company rather than a traditional automaker.

However, the enthusiasm didn’t last. The stock quickly returned to flat trading despite mild gains in major U.S. indexes.

Tesla shares are now up only 4% in 2025, even though they remain 24% higher year-over-year.

EV Demand Weakens as Tesla’s Profit Outlook Declines

While the robotaxi narrative continues to capture attention, Tesla’s core electric-vehicle business is losing strength. Analysts expect the company to deliver fewer than 1.7 million EVs in 2025, compared with just over 1.8 million in 2024.

Earnings expectations are also falling. Forecasts show 2025 earnings per share at $1.65, down from $2.42 in 2024.

Analysts believe Tesla’s strong U.S. deliveries in the third quarter were driven by shoppers rushing to secure a federal tax credit before it expired in late September, not by a true rise in long-term demand.

This suggests Tesla may face further pressure if consumer enthusiasm continues to slow.

I attempted to take a @robotaxi ride today from multiple different locations and time of day (from 9:00 AM to about 3:00 PM in Austin but never could do so.

I always got a “High Service Demand” message … I really hope @Tesla is about to go unsupervised and greatly plus up the… pic.twitter.com/IOUQlaqPU2

— Joe Tegtmeyer 🚀 🤠🛸😎 (@JoeTegtmeyer) November 26, 2025

Long-time investors still expect autonomy, robotics, and AI computing to reshape Tesla’s future profitability. But the near-term reality is that the company’s EV business is struggling across several regions.

Tesla Loses Ground in Europe as Competition Intensifies

Tesla’s sales decline is most visible in Europe.

Figures from the European Automobile Manufacturers’ Association show Tesla’s October sales dropped 48.5% compared with the previous year.

Year-to-date, Tesla’s European sales have fallen about 30%, even as overall EV sales in the region have climbed 26%.

This confirms a clear loss of market share.

The European EV market is becoming more crowded. Consumers now have access to more than 150 electric-vehicle models, many of which are priced below Tesla’s offerings.

Chinese competitors, led by BYD, are expanding aggressively and have already surpassed Tesla in recent monthly EV sales in Europe.

Tesla’s Future: AI Promise vs. EV Challenges

At the moment, Tesla stock is reacting more to Musk’s long-term AI vision than to the company’s vehicle fundamentals.

While updates on robotaxis, autonomous driving, and AI chip development continue to influence short-term market sentiment, the underlying EV business remains under pressure.

For Tesla to regain stronger upward momentum, investors will likely need to see progress both in its robotaxi rollout and in stabilizing its global EV sales.

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