New York—February 23, 2026, 10:10 EST. Regular session on the board.
- Tesla shares slipped roughly 2% in early New York action, lagging behind a milder start for U.S. markets.
- Fresh worries over tariffs and new doubts about U.S. EV demand, traders said, were in play.
- Nvidia’s results are up next on Feb. 25, with investors also looking for clarity on the timing of the new tariffs.
Tesla (TSLA.O) slipped 2.2% Monday, echoing a broader risk-off tone as fresh demand worries resurfaced for the electric-vehicle maker. Shares shed $9.18, trading at $402.64 during the morning session.
Stocks slipped out of the gate, with the Dow down 0.18% after President Donald Trump imposed a fresh 15% tariff, a move that followed the Supreme Court’s rejection of his earlier, broader levies. The S&P 500 edged lower by 0.12%, and the Nasdaq dropped 0.20%. (Reuters)
Tesla’s timing is key here. Shares have a habit of whipping around as risk sentiment changes, and the market hasn’t quite nailed down demand in the U.S. now that incentives have faded from the EV landscape.
“The tariff landscape is now more uncertain than before, uncertainty is not good news for any economy or market,” said Rodrigo Catril, senior FX strategist at NAB. Tomas Hildebrandt, senior portfolio manager at Evli, put it more bluntly: “Trump is Trump – he won’t abandon his America-first mantra and will keep pushing the limits as long as he’s in power.” (Reuters)
There’s data backing up the demand concerns. In January, U.S. new EV sales came in at an estimated 66,276 units, Cox Automotive said in a Feb. 16 report—a drop of 29.9% from the prior year. EVs grabbed just about 6% of new-vehicle sales for the month. Tesla moved roughly 40,100 units in January, enough to push its market share up to 60.5%, but volume still fell 17% from December, according to the same report. Inventories of new EVs stretched out to 168 days’ supply, based on the current sales pace. Average transaction prices for Teslas dipped 2%, landing at $52,628. (Cox Automotive Inc.)
Federal incentives are out of the picture, and the U.S. market is still recalibrating. Congress’s broad legislative move struck down the $7,500 tax credit for new EV leases and purchases, along with the $4,000 used EV credit—both ending as of Sept. 30, 2025, according to Reuters. (Reuters)
Auto stocks showed a mixed picture. Rivian shed 0.9%, Ford edged down 0.6%, and General Motors was off by roughly 1%. Lucid, on the other hand, tacked on about 1%.
Autonomy remains part of the story. On Monday, Reuters pointed out that most driver-assist features on the road, including Tesla’s Full Self-Driving, still sit at Level 2 — they’ll handle steering and braking, but drivers can’t tune out. Level 3, where “eyes-off” becomes possible, is only an option in certain scenarios. “We don’t know if Level 3 ever makes financial sense,” said Paul Thomas, head of Bosch’s North America division. Former Waymo chief John Krafcik put it bluntly: for many customers, “the juice isn’t worth the squeeze.” (Reuters)
The move isn’t one-sided. Pinning down a tariff timeline might give risk assets some footing, but if demand keeps slipping, pressure on EV prices could mount, squeezing margins across the whole sector.
The focus shifts to Wednesday, Feb. 25, with Nvidia scheduled to release quarterly numbers at 2 p.m. PT (5 p.m. ET)—a moment that could sway sentiment across the tech sector. Tesla, for its part, has a history of moving in tandem with broader tech risk when the tape gets volatile. (investor.nvidia.com)
