- Tesla stock rose by more than 6% in the last week.
- It's sales in Europe and China have been declining in 2025, leading to valuation concerns.
- CEO Elon Musk could receive $1 trillion worth of compensation, in what could create another tussle in courts.
As December begins, Tesla (NASDAQ: TSLA) stock finds itself in its usual state of contradictory motion. It faces some real challenges, like worries about the decline in their sales in Europe and China. Also, some well-known investors are not convinced about the company’s valuation. But at the same time, the stock is holding up surprisingly well, and has risen by over 6% in the last week. So what’s happening? Will TSLA end the year on a high note?
Tesla Stock Faces Strong Headwinds
So why doesn’t the stock just crash? Basically, many investors see Tesla as more than just a car company. They’re betting on the technology Tesla might create in the future, not just the cars they sell today. Robotaxi tests in Austin, the Bay Area, and growth in Optimus robot builds suggest a move toward AI and self-driving tech that could be worth trillions in the future.
Tesla’s car business does have some problems. In Europe, the number of Tesla cars registered dropped almost 50% in October, according to the European Automobile Manufacturers’ Association. China isn’t helping either. In November, competitors like BYD saw their sales grow by only 6% compared to last year, which is the slowest growth they’ve had all year. Meanwhile, Tesla’s share of the market in China has gone down, leading to price wars and lower profits, as TipRanks has reported.
Meanwhile, famed Wall Street short sell, Michael Burry’s Substack post over the weekend slammed Tesla’s $1.4 trillion market cap as absurd. He mentioned that Tesla’s stock is trading at over 250 times its earnings, which is much higher than other car companies. He also pointed out that Elon Musk might get a huge $1 trillion payment, which could dilute the stock’s value for other investors.
Will TSLA Price End the Year on a High?
Given the resilience, is a strong finish to the year on the cards? The outlook is cautiously optimistic. The possibility of a “Santa Rally” in December, driven by seasonal patterns and expectations of a future Federal Reserve rate cut is generally favorable for high-growth tech stocks like Tesla.
A “high” finish, say above $450, hinges on Q4 deliveries beating estimates, projected 441,500 pre-tax credit expiry, and positive robotaxi updates, per Reuters.
Tesla Stock Prediction
Tesla stock seems to pivot at $423, which is the 50-day EMA. The RSI at 51 favours the buyers to be in control, and initial resistance will likely be at $436. Breaking above that level will signal a stronger bullish hold, and such momentum could send TSLA higher to test $445. On the other hand, going below $423 will invite the sellers to take control. That will likely see the first support established at$414. If that support is broken, the stock could go lower and test $400.
Tesla Stock daily chart on December 1, 2025. Key Support and resistance levels created on TradingView
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