Tesla (TSLA) shares climbed sharply on December 19 as strong European expansion news and solid UK sales data lifted investor sentiment. The stock gained 3.7% to $484.70, moving closer to the key $500 resistance level.
Tesla’s Model Y and Model 3 continue to lead the UK electric vehicle market in 2025, reinforcing the brand’s dominance despite a year-over-year decline in overall market share.
TL;DR: Key Takeaways for Tesla Stock Investors
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Model Y and Model 3 are the top two best-selling EVs in the UK in 2025
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Tesla stock jumped 3.7% to $484.70 following a $1.2 billion German battery investment
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The Grünheide facility will produce up to 8 GWh of battery cells annually starting in 2027
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Tesla’s UK market share fell to 9.6% in 2025 from 13.2% in 2024
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TSLA is approaching major resistance near the $500 psychological level
Tesla Announces $1.2B Battery Investment in Germany
Tesla confirmed a $1.2 billion investment in battery cell production at its Grünheide gigafactory in Germany. The new facility is expected to produce up to 8 gigawatt hours of battery cells annually, with production starting in 2027.
This expansion is aimed at supporting local EV manufacturing while reducing reliance on third-party battery suppliers. Tesla described the project as “another three-digit million amount” dedicated to battery development. When combined with previous funding, Tesla’s total investment in German battery production now approaches €1 billion.
While Tesla acknowledged that producing battery cells in Europe remains challenging due to cost pressures, the company noted that supportive regulations and market conditions could enable a fully localized battery supply chain in the long term.
Tesla Stock Nears $500 Resistance Level
Following the announcement, Tesla stock surged to $484.70, bringing it close to the critical $490–$500 resistance zone. This price range has historically acted as a congestion area.
A decisive breakout above $500 would represent Tesla’s highest share price since late 2021 and could confirm the next leg of a bullish trend.
From a technical perspective:
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The 50-day simple moving average sits near $239
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The 200-day simple moving average is around $234
The wide gap between current price levels and long-term averages suggests strong upward momentum, but also indicates the stock may be extended in the short term.
Trading volume during the rally was more than 25% above the 30-day average, pointing to increased institutional participation. However, the Relative Strength Index is approaching 70, signaling that the stock may be nearing overbought conditions and could face short-term profit-taking.
Model Y and Model 3 Lead UK EV Sales in 2025
Tesla’s vehicles continue to dominate the UK electric vehicle market. In 2025:
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Tesla Model Y sold 18,890 units
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Tesla Model 3 sold 16,361 units
These figures place both models well ahead of competitors. The next best-selling EV, the Audi Q4 e-tron, recorded 10,287 units sold, trailing the Tesla models by a wide margin.
Despite leading the rankings, both models saw declines compared to 2024:
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Model Y sold 32,610 units in the UK in 2024, when it was the country’s best-selling car overall
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Model 3 sold 17,272 units in 2024
The 2025 numbers keep the Model 3 roughly in line with last year, while the Model Y experienced a more notable drop.
Tesla’s UK Market Share Slips Year Over Year
Tesla sold 50,090 vehicles in the UK in 2024. With two weeks remaining in 2025, the company is about 8,000 units behind last year’s pace.
As a result, Tesla’s UK market share declined:
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13.2% in 2024
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9.6% in 2025
Even with the drop, Tesla remains the UK market leader, ahead of Volkswagen, which currently holds an 8% market share.
Sales momentum throughout the year was uneven. Tesla recorded:
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A sales increase of over 20% in February
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A further 14% increase in June
These spikes highlight periods of strong demand but also underline the inconsistency in monthly performance.
Regulatory Risk Adds Uncertainty
Adding a note of caution, the California DMV ruled that Tesla’s marketing language for Autopilot and Full Self-Driving features could be misleading. The agency has the authority to impose a 30-day sales license suspension.
However, enforcement is currently on hold as Tesla works with regulators and updates its marketing language. While this issue has not yet impacted sales, it remains a potential regulatory risk for the company.
Outlook: Momentum Strong, but Resistance Ahead
Tesla’s strong UK sales leadership and aggressive European battery investment continue to support the long-term growth narrative. In the short term, however, the stock faces a critical test near the $500 level.
A sustained breakout above resistance could attract additional momentum buying, while elevated technical indicators suggest investors may also brace for volatility as Tesla enters overbought territory.
