Tesla (TSLA) shares are inching down on Wednesday even though the EV maker said its sales recovered sharply last month in Australia. 

The company’s electric vehicle sales in the region climbed significantly to a 12-month high of 3,897 in May. Much of that strength was related to soaring demand for its revamped Model Y. 

Despite today’s decline, Tesla stock is up more than 50% versus its year-to-date low. 

EV Sales Pickup Could Drive Tesla Stock Higher

Tesla bulls have been counting on the company’s upcoming launch of robotaxi services in Austin, tentatively slated for June 12. But the monthly sales data offers another compelling reason to hop right back into the EV stock. 

According to data from the Australian Electric Vehicle Council, the automaker’s deliveries in May were up a whopping 675% sequentially in the land down under, indicating a meaningful pickup in demand. 

Plus, TSLA sales in Norway were also up some 213% last month, potentially further substantiating that drivers are turning back to its EVs following reputational damage from Musk’s involvement in politics. 

In short, the aforementioned data confirms that the company’s sales are starting to recover globally, which could help unlock significant further upside in Tesla stock moving forward.

Morgan Stanley Forecasts a Rally in TSLA Shares to $410

Morgan Stanley analysts reiterated their “Overweight” rating on Tesla shares in a research note this morning, citing the EV giant’s potential to break into the drone industry. 

The company has significant experience in manufacturing, electric motors, autonomy, battery storage, and robotics – which makes it well-positioned to penetrate the “commercial and non-commercial” drones market, they wrote. 

Robotaxi operations and humanoid robotics progress could push TSLA stock up further to $410 over the next 12 months, the investment firm added. 

Morgan Stanley’s price target translates to more than 20% upside in Tesla from current levels.

What’s the Consensus Rating on Tesla in 2025?

Despite positive EV sales data and the expected launch of robotaxi services next week, Wall Street remains cautious on Tesla stock for the remainder of 2025. 

The consensus rating on TSLA currently sits at “Hold” only with the mean target of $292 indicating potential downside of 15% from here.