Tesla Sales Recovery Gains Momentum as Iran Conflict Pushes Gas Prices Higher

Benzinga reported Tuesday that prominent investor Ross Gerber, co-founder of wealth management firm Gerber Kawasaki, believes Tesla’s sales recovery is now underway. He cited rising fuel costs tied to the ongoing Iran conflict as a key driver pushing consumers toward electric vehicles.

Gerber Calls a Floor on Tesla Sales

Gerber made his case in a post on X. He described Tesla’s sales trajectory as having “bottomed” and said conditions were “looking better.” His argument centred on fuel economics. Elevated petrol prices, he suggested, are persuading cost-conscious drivers to reconsider battery-powered alternatives. He credited what he called the “magic” of high gas prices for improving the EV value proposition. Gerber added that buyers still want the best available electric vehicles, even amid broader cultural tensions around the Tesla brand.

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A Difficult Period for Tesla’s Brand

Tesla’s recent sales history has been complicated by factors beyond the product itself. CEO Elon Musk’s high-profile involvement in right-wing politics and his association with the Trump administration drew significant consumer backlash earlier this year. Critics predicted lasting damage to the brand’s reputation, particularly among environmentally motivated buyers who form a core part of Tesla’s customer base. Musk pushed back publicly against those assessments.

Model Y Remains a Global Powerhouse

Despite the turbulence, Tesla’s core products have continued to perform at a competitive level. The Model Y was the best-selling passenger car globally in 2023, 2024, and 2025, a three-year run that few vehicles in history have matched. Cumulative Model Y deliveries have now surpassed 4 million units worldwide. More recently, monthly sales figures from France and the Netherlands showed year-on-year growth, suggesting the European market is beginning to stabilise for the automaker.

Macro Tailwinds Shift the Calculus

The geopolitical backdrop is now creating an unexpected tailwind for the EV sector. Conflict-driven oil price pressure has lifted pump prices across major markets, compressing the running-cost advantage that internal combustion vehicles have traditionally held over electric alternatives. For consumers sitting on the fence between a petrol car and an EV, the equation is shifting. Tesla shares reflected cautious optimism, trading up roughly 0.4% in after-hours activity Wednesday at around $435 per share. Whether that momentum extends into the next delivery cycle will depend on how long fuel prices remain elevated and how quickly consumer sentiment toward the brand continues to heal.

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