New York, June 2, 2026 – Tesla shares climbed 1.9% to $423.74 in after-hours trading Tuesday, partially recovering from a 4.6% drop the prior day. The uptick came as fresh sales data from China and Europe bolstered demand sentiment for the electric vehicle maker.
According to the China Passenger Car Association, Tesla sold 85,982 China-made vehicles in May, a 39.4% increase year-over-year and the seventh consecutive month of gains. Those figures cover Model 3 and Model Y units produced in Shanghai for domestic and export markets, including Europe.
European registrations also showed strength. Data from national agencies revealed France saw a 655% surge to 5,446 vehicles, Norway rose 29% to 3,345, Denmark jumped 136%, Spain added 113%, Portugal climbed 349%, and Sweden increased 71%. Only Italy fell, dropping 23.5%. These registrations are tracked ahead of full sales reports.
Despite the positive demand signals, Tesla’s valuation remains heavily tied to future autonomous driving and robotics revenue, not just vehicle sales. The company has outlined a capital spending plan exceeding $25 billion for 2026, with funds allocated to AI, robotics, and chip infrastructure. CFO Vaibhav Taneja described this as a “very big capital-investment phase” and warned of negative free cash flow through the remainder of the year.
Investors are pricing in hopes for self-driving software, robotaxis, and humanoid robots, but delays carry significant costs. Tesla is still awaiting Chinese regulatory approval to launch its latest driver-assistance technology. Meanwhile, competition is intensifying. BYD, Tesla’s top Chinese rival, broke an eight-month global sales slump and maintained strong export volumes to Europe and other regions.
AI developments also weighed on Tesla’s narrative. OpenAI CEO Sam Altman announced on X that OpenAI Robotics is actively hiring hardware, operations, systems, and machine-learning engineers, drawing attention to Tesla’s Optimus robot program and raising questions about whether robotics will become a crowded, expensive field rather than a Tesla-led bet.
Major indexes finished mixed on Tuesday, with the Dow up 0.45%, the S&P 500 adding 0.13%, and the Nasdaq edging up 0.03%. AI optimism provided some lift, but lingering Middle East risks kept gains in check. Mike Dickson, head of portfolio management at Horizon Investments, described the market as “muted at the surface level” but noted “a lot going on under the hood.”
Analysts remain cautious on Tesla’s rebound. Thomas Monteiro, senior analyst at Investing.com, earlier this year said that “rollout metrics – not deliveries” will be the key leading indicator going forward. The May sales figures, while improved, do not guarantee a sustained recovery, as registrations and factory shipments can outpace true consumer demand. Tesla also continues to face price cuts, fierce competition from Chinese EVs, unresolved lawsuits over Autopilot and Full Self-Driving promises, and potential headwinds from soft sales in Germany or Britain, or slower-than-expected progress on Robotaxi or Optimus initiatives.
