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Tesla shares attempted another rebound on Thursday but failed to sustain momentum, slipping about 1% after opening higher.
The initial gains followed reports that the company is considering a new electric vehicle.
However, the reaction faded quickly, reflecting continued investor caution.
New EV plans fail to excite investors
Tesla is exploring an all-new electric vehicle, Reuters reported, citing people familiar with the matter.
The report added that the company is considering a smaller SUV that would not be a variant of the Model Y.
The prospect of a new vehicle could help revive sales, which have remained under pressure. However, investors appear unconvinced.
Plans for a lower-priced EV have been discussed since at least early 2023, limiting the impact of the latest report.
Tesla has not launched a completely new passenger vehicle since the Model Y in 2020.
Instead, the company has focused on projects such as its Cybercab robo-taxi and lower-cost versions of existing models.
These moves have not significantly improved sales.
Tesla sold about 1.81 million vehicles in 2023, followed by 1.79 million in 2024 and 1.64 million in 2025.
Sales are expected to rise modestly to around 1.72 million this year, according to FactSet.
Core business still critical
Despite its growing focus on artificial intelligence, Tesla’s automotive business remains central to its financial performance.
The company is investing heavily in AI, including self-driving technology and robotics.
It is also allocating billions of dollars to convert Model S and Model X production capacity into a robot assembly line at its Fremont facility.
Even so, cars continue to generate the bulk of Tesla’s earnings and cash flow, underscoring the importance of renewed investment in its core EV lineup.
Stock remains under pressure
Tesla shares are on track for their eighth consecutive weekly decline.
Coming into Thursday trading, the stock was down about 24% for the year and more than 30% below its 52-week high.
The prolonged weakness reflects concerns around slowing demand, intensifying competition, and uncertainty over the company’s strategic direction.
However, this slump has not deterred retail investors.
Retail traders on online trading apps have been one of the most ardent backers of the company.
As per recent data, Bottom-fishing activity is picking up in Tesla, with retail investors stepping in amid the recent decline in the stock.
According to Vanda Research, Tesla has attracted about $256 million in retail inflows over the past few days, reflecting continued dip-buying and what the firm described as strong conviction among individual investors.
In contrast, retail demand for other “Magnificent Seven” names, including NVIDIA, Meta, and Microsoft, has cooled over the same period, based on Vanda’s data.
BYD expands global lead
BYD continues to strengthen its position in global EV markets, adding pressure on Tesla.
Barclays reiterated its “Overweight” rating on BYD and maintained a price target of $22, implying more than 60% upside, as per an Investing.com report.
The brokerage said BYD’s global competitiveness is improving as it expands production and leverages its vertically integrated model.
The company now operates in nearly 120 countries.
BYD sold 1.05 million vehicles outside China in 2025, a 145% increase year-on-year, with overseas sales expected to reach 1.5 million units in 2026.
In Europe, BYD overtook Tesla in early 2026, becoming the top-selling EV brand in January and February.
It has also outperformed Tesla in markets such as Australia, Thailand, Turkey, and Brazil.
Barclays noted that overseas expansion is boosting profitability, as vehicles sold internationally often command higher prices than in China.
While Tesla remains a dominant player, rising competition—particularly from Chinese manufacturers—is reshaping the EV landscape.
For Tesla, the success of any new vehicle launch could be critical in stabilising sales and restoring investor confidence, especially as rivals continue to gain ground across key international markets.
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