Tesla (TSLA) Stock: Climbs as Company Commits $1.2 Billion to German Battery Production

TLDR

• Tesla stock gained 3.7% to $484.70 following announcement of $1.2 billion battery production investment in Germany
• German gigafactory will produce 8 gigawatt hours of battery cells annually starting in 2027
• Model Y leads UK EV sales with 18,890 units, Model 3 follows with 16,361 units in 2025
• Tesla’s UK market share declined to 9.6% from 13.2% in 2024 despite maintaining sales leadership
• Stock approaching critical $500 resistance level with RSI indicators showing overbought conditions

Tesla shares rose 3.7% to $484.70 on December 19 after the electric vehicle maker announced plans to invest $1.2 billion in battery cell production at its German gigafactory. The move represents a major step in Tesla’s European expansion strategy.

Tesla, Inc., TSLA

The Grünheide facility will produce up to 8 gigawatt hours of battery cells per year. Production is scheduled to begin in 2027 and will support local vehicle assembly operations.

Tesla confirmed it is adding “another three-digit million amount” to the battery segment. This brings total investment in German cell production to nearly €1 billion.

The company acknowledged challenges with European battery economics. Tesla stated it is “hardly possible to produce cells economically in Europe” under current conditions but sees potential with proper regulatory support.

Stock Nears Key $500 Price Level

Tesla stock is testing resistance in the $490 to $500 range. This zone has historically acted as a congestion area based on past price action.

Breaking above $500 would mark the highest price point since late 2021. Such a move could trigger additional momentum buying from traders and algorithms.

Volume has increased more than 25% above the 30-day average during the recent rally. This elevated activity signals strong institutional participation behind the upward move.

The Relative Strength Index is approaching 70, indicating overbought territory. This suggests the stock may consolidate before attempting another leg higher.

The 50-day moving average sits at $239 while the 200-day average is near $234. The large gap between current price and these averages reflects the strength of the recent surge.

UK Sales Lead Despite Market Share Decline

Tesla’s Model Y captured the top spot in UK electric vehicle sales for 2025 with 18,890 units. The Model 3 ranked second with 16,361 units sold through mid-December.

The Audi Q4 e-tron placed third with 10,287 units. This trails Tesla’s top models by a considerable margin.

Tesla’s total UK sales will finish below 2024 levels. The company sold 50,090 vehicles last year but is running about 8,000 units behind that pace.

Market share dropped from 13.2% in 2024 to 9.6% in 2025. Despite the decline, Tesla still leads Volkswagen’s 8% market share.

Sales performance varied throughout the year. February saw a 20% increase while June posted a 14% gain.

The Model Y sold 32,610 units in the UK during 2024 as the best-selling car overall. The Model 3 reached 17,272 units last year and will finish near that level in 2025.

California regulators determined that Tesla’s marketing of Autopilot and Full Self-Driving features could mislead consumers about autonomous capabilities. A potential 30-day sales license suspension remains under consideration, though enforcement is currently on hold as the company updates its promotional language.

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