NEW YORK, January 20, 2026, 10:33 EST — Regular session
- Tesla shares slip amid a wider risk-off wave triggered by unsettling trade news
- Investors are sizing up new policy shifts and supply-chain updates as Tesla’s next earnings report approaches
- Key dates on tariffs, Canada rules, and battery-material supply contracts are packed tight on the calendar
Tesla, Inc. shares dropped 2.6% to $426.18 by 10:26 a.m. EST Tuesday, following a decline from Friday’s $437.50 close. The stock hit a low of $421.80 during the session.
The drop is significant since Tesla behaves like a high-sensitivity macro stock: it tends to move more sharply than the broader market when investors pull back from riskier bets. This “risk-off” rotation—capital flowing out of growth stocks into safer havens—has driven much of the market action so far this week.
Bulls face tricky timing. Tesla’s earnings are due later this month, while traders keep a close eye on trade-policy shifts that might impact demand and costs—ranging from Chinese exports to the battery supply chain.
U.S. indexes dipped following President Donald Trump’s threat to impose new tariffs on multiple European nations, tied to tensions over Greenland. “We’re seeing weakness because headlines stoke anxiety and uncertainty about what lies ahead,” said David Lundgren, chief market strategist at Little Harbor Advisors. 1
Canada plans to let in up to 49,000 vehicles annually from China at a 6.1% tariff — the usual “most-favoured nation” rate — under a recent deal, Prime Minister Mark Carney said. Tesla, which outfitted its Shanghai plant last year to export a Canada-specific Model Y and operates 39 stores there, could quickly ramp up exports again, according to Sam Fiorani, vice president at AutoForecast Solutions. Half the quota is set aside for cars priced below C$35,000, a threshold beneath Tesla’s current lineup, while Chinese competitors BYD and Nio have yet to establish a sales foothold. 2
Syrah Resources and Tesla have agreed to push back the deadline for resolving an alleged breach of their graphite offtake agreement for a third time. The contract, which covers battery anode graphite, now has a new cure date of March 16, pending approval from the U.S. Department of Energy. Tesla retains the right to cancel the deal if Syrah’s graphite fails to meet technical specs by February 9. Syrah maintains it is not in default, the company said. 3
Tesla reported producing 434,358 vehicles and delivering 418,227 in the fourth quarter. It also set a new record for energy-storage deployments at 14.2 GWh. The automaker plans to release its Q4 earnings after the market closes on Jan. 28, followed by a Q&A webcast that evening. 4
Investors face the Canada quota and the Syrah dispute alongside a recurring question: how much of Tesla’s performance hinges on car volume and pricing power, versus how much depends on related businesses that might smooth out the ups and downs of the auto cycle.
But the latest headlines tell two stories. Canada’s quota features a price cap that might push some imports toward lower-priced models, while supply-contract disputes risk either dragging out or ending suddenly.
Traders are focused on how fast Canada rolls out the new import quota and if Syrah meets Tesla’s technical requirements ahead of the Feb. 9 trigger. Tesla’s earnings report on Jan. 28 remains the next major catalyst for the stock.
