Tesla Stock Rises Despite Looming Subsidy Cuts and Delivery Concerns
Tesla shares defied broader market concerns with a 1% gain during early trading Wednesday, even as new data revealed significant sales declines across key markets. Registrations for new EVs in Europe plummeted 48.5% year-over-year in October, while China sales hit their lowest level in three years amid intensifying competition from domestic manufacturers like BYD and Nio.
The uptick comes despite warnings from Mizuho Securities analyst Vijay Rakesh about impending headwinds. The expiration of U.S. EV purchase subsidies could slash Tesla's 2026-2027 delivery projections by half, creating what Rakesh describes as a 'perfect storm' of shrinking government support and saturated markets.
October's sales slump extended beyond Europe and China, with delivery numbers softening in Tesla's home U.S. market and South Korea. The simultaneous downturn across all major regions raises questions about whether current valuations account for these structural challenges.
