New York, January 16, 2026, 09:33 EST — Regular session underway
- Tesla shares slipped roughly 0.2% early Friday, adding to a volatile week
- U.S. regulators have extended Tesla’s deadline to respond to inquiries about its Full Self-Driving system
- Investors are eyeing the Jan. 28 earnings report for fresh details on margins and software revenue
Tesla shares slipped in early Friday trading after U.S. auto safety regulators gave the company extra time to respond to a federal investigation into its Full Self-Driving system.
The extension prolongs regulatory uncertainty around a crucial element of Tesla’s investor appeal: its software and driver-assistance features, which promise recurring revenue as the electric-vehicle market evolves and price cuts take effect. With earnings less than two weeks away, the timing is far from ideal.
The National Highway Traffic Safety Administration pushed back Tesla’s deadline for critical responses to Feb. 23. The extension came after Tesla requested extra time to go over documents related to alleged traffic-law breaches while Full Self-Driving was active. 1
Tesla slipped 0.2% to $438.57, after opening at $441.07. The stock had closed Thursday almost unchanged.
Regulators are reviewing complaints, crash reports, and other related materials tied to the system. NHTSA said it has logged 62 complaints and found additional media coverage and crash reports that might be linked to the problem, the agency said.
The extension comes just days after CEO Elon Musk announced Tesla will switch Full Self-Driving (Supervised) to a subscription-only model starting Feb. 14. Currently, U.S. owners can either pay a one-time fee of $8,000 or opt for a $99 monthly subscription, Reuters reported. 2
Musk was straightforward on X: “Tesla will stop selling FSD after Feb 14.” 3
Full Self-Driving is a driver-assistance system that still demands the driver’s attention. While the software manages tasks like lane changes and stopping at traffic lights, the driver must remain ready to intervene.
Tesla will release its quarterly earnings after the market closes on Jan. 28. The company also plans a Q&A webcast later that day, it said. 4
Rivian and Lucid slipped early Friday, adding pressure on Tesla amid a broader tech selloff.
The downside is straightforward: stricter regulations might force Tesla to alter how it markets or rolls out its driver-assistance features, potentially leading to expensive fixes. The move to subscriptions brings risk too, especially if drivers resist monthly fees or if increased scrutiny slows adoption.
Traders are now focused on a tightly packed calendar: updates from regulators before the Feb. 23 deadline, the shift to subscription-only access on Feb. 14, and Tesla’s Jan. 28 earnings. They’ll be looking for clues that software sales can help cushion the blow from weaker car demand.
