Tesla faces declining sales, contracting margins, and brand damage, with increased competition eroding its market share in Europe and California.

Shares of Tesla (NASDAQ: TSLA) climbed higher on Monday. The electric vehicle (EV) maker's stock gained 3% as of market close, but had jumped as much as 4.6% earlier in the day. The spike comes as the S&P 500 (SNPINDEX: ^GSPC) was flat and the Nasdaq Composite (NASDAQINDEX: ^IXIC) rose 0.3%.

Tesla is a story stock, as investors are always believing in Elon Musk's grand vision. Based on the valuation, which is not even remotely rooted in the reality of the business today, the market sees Tesla succeeding with its goal of launching a global robo-taxi platform. Musk thinks this service could see "quasi-infinite" demand.

EV maker Tesla ($TSLA) is in a transition phase, according to Yahoo Finance’s Opening Bid interview with Gradient Investments’ Lisa Schreiber. On

Tesla's valuation gains today follow a bigger sell-off in yesterday's trading that was spurred by disappointing second-quarter results and comments from management suggesting that performance headwinds could continue in the near term. The company's share price has seen some big swings in 2025, and is down roughly 21% year to date with today's pop.

What Happened? Shares of electric vehicle pioneer Tesla (NASDAQ:TSLA) jumped 4% in the afternoon session after the company announced a significant, multi-billion dollar contract with Samsung Electronics to produce its next-generation AI chips.