Tesla stock rebounding around 1.5% today: what's behind the move?

Tesla TSLA shares rose 1.6% on Tuesday to $422.57, rebounding after two consecutive sessions of declines as investors welcomed stronger vehicle sales data from China and signs of continued recovery across several European markets.

The gain followed a difficult start to the week for the electric vehicle maker.

Tesla stock fell roughly 4.5% on Monday after investors reacted to OpenAI's expanding robotics ambitions, which are increasingly viewed as a potential competitive threat to Elon Musk's long-term vision for humanoid robots.

However, fresh delivery and registration figures helped shift investor attention back toward Tesla's core automotive business.

China deliveries extend growth streak

Tesla's China operations delivered another strong month of growth in May.

According to data released by the China Passenger Car Association on Tuesday, deliveries of China-made Tesla vehicles increased 39.4% year-over-year in May, marking the seventh consecutive month of growth.

The figures include both domestic sales and exports from Tesla's Shanghai factory to Europe and other international markets.

Combined deliveries of Model 3 and Model Y vehicles from the Shanghai facility reached 85,982 units during the month, representing an 8.2% increase from April.

The performance suggests Tesla continues to hold its position despite intensifying competition from domestic Chinese manufacturers, many of which have aggressively expanded their electric vehicle offerings over the past year.

European recovery continues

Tesla also recorded improving sales trends across much of Europe, extending a recovery that has been underway in recent months following a period of weaker demand.

New vehicle registrations, which serve as a proxy for sales, rose sharply across several European markets during May.

In France, Tesla registrations surged 655% year-over-year to 5,446 vehicles, according to data from French automotive body PFA.

Norway recorded a 29% increase to 3,345 vehicles, based on figures from OFV. Several smaller European markets also posted strong gains.

Registrations rose 136% to 1,750 vehicles in Denmark, 113% to 1,690 vehicles in Spain, 349% to 1,463 vehicles in Portugal, and 71% to 858 vehicles in Sweden, according to data from bilstatistik.dk, ANFAC, ACAP, and Mobility Sweden.

Italy remained a weaker market for Tesla during the month. Registrations declined 23.5% year-over-year to 654 vehicles.

However, Tesla's cumulative sales in Italy during the first five months of 2026 remained more than 15% above the comparable period in 2025.

The improving European figures come after Tesla lost nearly half of its regional market share during 2025 amid growing competition, particularly from Chinese automakers, an aging product lineup, and backlash related to Chief Executive Elon Musk's political positions.

AI remains central to Tesla's valuation

Despite the encouraging automotive data, investor attention remains increasingly focused on Tesla's artificial intelligence initiatives.

The company's investment narrative has shifted significantly over the past year, with many shareholders placing greater emphasis on future growth opportunities tied to Full Self-Driving software, robotaxi services, and the Optimus humanoid robot program.

That focus was evident in Monday's selloff, which was triggered largely by concerns that OpenAI's newly announced robotics ambitions could eventually challenge Tesla's position in the emerging humanoid robotics market.

While vehicle sales remain a critical part of Tesla's financial performance, investors continue to view the company's long-term valuation through the lens of its AI strategy and its ability to establish leadership positions in autonomous driving, robotics, and other next-generation technologies.