New York, Jan 27, 2026, 09:35 a.m. EST — Regular session
- Tesla shares dropped roughly 3% in early U.S. trading.
- Investors are gearing up for Tesla’s quarterly report on Jan. 28, with a keen eye on comments about autonomy.
- New data from Europe revealed Tesla’s December registrations dropped, while BYD’s numbers surged.
Tesla shares dropped roughly 3% in early U.S. trading Tuesday, lagging behind the broader market. The stock slid $13.83 to $435.20.
The announcement arrives one day ahead of Tesla’s quarterly earnings, with investors eager to hear from CEO Elon Musk about advancements in autonomy and sales momentum. Tesla’s investor relations calendar confirms the results are set for Jan. 28. 1
Wall Street is bracing for weak results, with LSEG data pointing to a 3.6% drop in Q4 sales and a 40% fall in adjusted profit as deliveries decline in 2025. Still, bulls remain fixated on autonomy. Britzman at Hargreaves Lansdown noted investors are “looking past the near-term fundamentals,” while Ken Mahoney of Mahoney Asset Management pegged 2026 as the year “AI becomes revenue and profit.” Elon Musk said last week Tesla’s robotaxi service in Austin is already running without a human backup in the vehicle. He also expects regulatory approval for Full Self-Driving (FSD)—the driver-assistance software that still needs supervision—in Europe and China by next month. Visible Alpha’s estimates put Tesla’s automotive gross margin, excluding regulatory and emissions credits sold to other automakers, at 14.3%. 2
Tesla slipped again after falling 3% on Monday, when it weighed most heavily on the S&P 500 despite broader gains ahead of a busy week packed with mega-cap earnings and the Federal Reserve’s upcoming decision. 3
Data from Europe hasn’t been much help. December marked the first time battery-electric car registrations surpassed petrol, yet Tesla’s numbers dropped 20.2%, while BYD’s surged by 229.7%, according to ACEA. Chris Heron, secretary general at E‑Mobility Europe, said, “We’re seeing consumer buy-in to this.” 4
Tesla’s pressing issue now: can its car division halt margin erosion as it pours money into autonomy and software? Traders are zeroed in on pricing moves, demand cues, and any tilt toward lower-priced models.
Investors are keen to hear if Tesla can shift driver-assistance features into a more reliable stream of recurring revenue, rather than relying on sporadic one-off sales. Even subtle shifts in Musk’s wording often hit the stock hard.
Yet the autonomy angle isn’t without pitfalls. Regulators might stall approvals, and a single safety glitch could trigger intense scrutiny right when the company is pushing to expand its driverless operations.
Competition is relentless, particularly beyond the U.S. Chinese brands are accelerating quickly, while local players pack showrooms with fresh electric models.
Tesla’s Jan. 28 earnings and Q&A will be the next key event. Investors will be watching closely for any firm dates on Cybercab production kicking off in 2026, along with updates on FSD approvals abroad—these details could move the stock sharply.
