As Elon Musk restructures his corporate empire, focusing on SpaceX and xAI, Tesla’s core automotive business is sending unexpectedly positive signals. After a prolonged period of challenges, recent sales figures from key international markets point toward a tangible operational recovery. This resurgence coincides with a multi-billion dollar asset reshuffle within Musk’s network, a move that is generating significant discussion among shareholders.
Operational Recovery in Key Regions
Beyond the corporate structural debates, Tesla’s day-to-day business is providing concrete reasons for optimism. In the strategically vital Chinese market, the automaker reported a year-over-year sales increase exceeding 35% for the combined months of January and February. Retail sales for February alone climbed to 38,206 vehicles, driven largely by robust demand for the Model Y. The competitive dynamic is notable: while Tesla’s deliveries grew, its chief Chinese rival, BYD, recorded a 36% decline in deliveries over the same period.
The positive trend extends to Europe. Tesla registered 17,425 vehicles across 15 core European markets in February, achieving a 10% increase. This marks the first significant growth after 13 consecutive months of declines on the continent. The stock closed at 341.70 euros on Friday, still reflecting a year-to-date loss of just over 8%.
A Multi-Billion Dollar Strategic Pivot
The U.S. Federal Trade Commission (FTC) has approved a significant transaction. Tesla is permitted to convert its original $2 billion investment in the AI startup xAI into an equity stake in SpaceX. This follows the recent merger of xAI with the aerospace company, creating an entity valued at approximately $1.25 trillion. For Tesla, this transaction results in a stake of just under one percent in the combined organization.
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This strategic shift paves the way for SpaceX’s anticipated initial public offering (IPO) in June, which could reach a historic scale of up to $50 billion. However, the maneuver is contentious among some investors. Certain shareholders have already filed lawsuits, alleging a potential breach of fiduciary duty. They express concern over what they see as an improper transfer of capital and talent into Musk’s private network of companies.
Deep Divisions Among Market Experts
The fundamental developments at Tesla are reflected in sharply divergent assessments from Wall Street analysts. The wide range of current price targets underscores the differing valuations of the company’s future prospects:
- Wedbush: $600
- Bank of America: $460
- BNP Paribas: $280
- GLJ Research: $25.28
This deep split stems from the varying weight analysts assign to different business segments. While Tesla’s total revenue for 2025 declined slightly by 3% to $94.8 billion, its high-margin future-oriented segments are expanding rapidly. The number of active users for its Full Self-Driving (FSD) software surged by 38% to 1.1 million. Concurrently, revenue from energy generation and storage jumped 27% to $12.8 billion.
The coming weeks offer specific catalysts for the stock’s trajectory. Early April will bring first-quarter delivery figures and the planned start of production for the Cybercab. Furthermore, the company is targeting regulatory approval for its supervised FSD software in Europe by mid-year. These operational milestones, coupled with the potential SpaceX IPO, will define the roadmap for the second quarter.
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