Tesla stock rose on Friday as the company attempted to close out a difficult week for technology stocks on a stronger footing, even as broader concerns about demand and competition continued to cloud its outlook.
In midday trading, Tesla shares were up about 3.5% at $411.28. The broader market also advanced, with the S&P 500 rising 1.4% and the Dow Jones Industrial Average gaining 1.8%.
The rebound followed a sharp sell-off earlier in the week, driven largely by weakness across the technology sector.
Tesla is often grouped with high-growth tech stocks, and the tech-heavy Nasdaq Composite was down nearly 4% for the week through Thursday’s close.
Tech sell-off weighs on Tesla
Tesla’s weekly losses have mirrored broader pressure on major technology names.
Shares of Alphabet declined after earnings, while Amazon fell in Friday trading following its results a day earlier.
Software stocks also slid amid concerns that artificial intelligence is disrupting traditional business models.
Against that backdrop, Tesla entered Friday’s session down nearly 8% for the week.
The stock had fallen on three of the previous four trading days and in 12 of the past 17 sessions, reflecting sustained selling pressure and cautious investor sentiment.
The recent weakness reflects a combination of valuation concerns, slowing electric vehicle demand in some markets, and broader uncertainty around technology-sector earnings and capital spending.
China deliveries show modest improvement
Separately, data from China offered some support to Tesla’s narrative, though analysts said it did little to change the broader demand picture.
According to figures released by the China Passenger Car Association on Wednesday, Tesla’s January deliveries from its Shanghai Gigafactory rose 9% year on year to 69,129 units, up from 63,238 in January 2025.
The increase placed Tesla third among major electric vehicle manufacturers in China.
BYD led the market with 205,518 shipments, followed by Geely with 124,252 units.
The Shanghai facility produces the Model 3 and Model Y for both domestic and export markets, including Europe and parts of the Asia-Pacific region.
As a result, the delivery figures reflect shipments to multiple destinations rather than solely Chinese consumer demand.
Despite the year-on-year increase, analysts said there is little evidence of a sustained recovery in demand for Tesla’s vehicles in China, the world’s largest EV market.
The broader industry has been facing a slowdown, and competition has intensified.
Competition and pricing pressure persist
Tesla continues to face mounting pressure from domestic Chinese manufacturers offering lower-priced alternatives.
In a separate report, the CPCA said total sales of Tesla’s China-produced vehicles fell 4.8% in 2025, making it one of only two manufacturers in Beijing to record a year-on-year decline.
Pricing remains a key challenge. Tesla’s base Model 3 sedan is priced at around 235,500 yuan ($33,943), nearly three times the cost of the base version of BYD’s Seal, which starts at about 79,800 yuan.
To maintain competitiveness, Tesla has relied heavily on incentives and price cuts.
According to its Chinese website, the company is offering five-year zero-interest loans and seven-year “ultra-low” interest rate loans for orders placed before February 28.
Such measures have helped support short-term volumes but have also raised concerns about margin pressure and long-term profitability.
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