Why Did Tesla Stock Jump 10% This Week?

Core Insights - Tesla is experiencing a significant decline in electric vehicle sales, with European sales dropping 48.5% in October year-over-year and a 30% decrease for the year, despite overall EV sales in Europe increasing by 26% [1][3]. Group 1: Sales Performance - Tesla's European sales have plunged 48.5% in October compared to the same period last year [1]. - The company has lost 30% of its market share in Europe this year [3]. - Overall EV sales in Europe have increased by 26%, indicating a loss of competitiveness for Tesla [3]. Group 2: Stock Performance - Despite the decline in sales, Tesla's stock has surged by 9.8% this week [2]. - Investors are shifting their focus from EV sales to Tesla's advancements in artificial intelligence technology [2]. Group 3: AI Technology Investments - Elon Musk has emphasized significant investments in AI technology, urging investors to believe in Tesla's future in autonomous driving and robotics [4]. - Tesla has designed and deployed millions of AI chips across its vehicles and data centers, with the latest AI5 chip nearing completion and the next-generation AI6 chip already in development [5]. - The company plans to introduce updated chip designs into production every 12 months, similar to Nvidia's strategy, reinforcing its identity as a technology company [6].