NEW YORK, Feb 25, 2026, 10:03 (ET) — Regular session underway.
Tesla (TSLA.O) climbed 2.1% to $417.87 by 9:47 a.m. ET, up from its $409.38 finish on Tuesday. Even so, shares remain roughly 7% lower for the year.
This shift packs a punch: Tesla’s behaving like a classic high-beta tech play once more—equal parts carmaker, autonomy bet, and robotics story. As soon as the AI sector calms, buyers tend to jump back into Tesla, messy news cycle or not.
Nvidia’s quarterly numbers, landing after Wednesday’s closing bell, have turned into the next big test for the “Magnificent Seven”—that list includes Tesla. “Nvidia’s earnings matter because they are kind of the linchpin of the Mag Seven,” said Chuck Carlson at Horizon Investment Services. Over at Slatestone Wealth, Ken Polcari argued AI will “continue to disrupt the world,” but added, “I don’t think it’s the end of the world.” Reuters
Tesla has reignited its dispute with California regulators over the way it advertises its automated driving features. The company is taking the California Department of Motor Vehicles to court, aiming to reverse a ruling that said Tesla was misleading consumers, according to TechCrunch. The DMV decided last week not to pull Tesla’s licenses after the company dropped the word “autopilot” from its marketing in California. Tesla’s description says “Autopilot” manages highway acceleration, braking, and lane-keeping, while “Full Self-Driving” adds lane changes and traffic signal response on city streets—though drivers still need to supervise. TechCrunch
A federal judge in San Francisco on Tuesday allowed a class action to move forward against Tesla, which stands accused of favoring foreign hires to cut labor costs and discriminating against U.S. citizens. Still, the judge expressed doubts about the software engineer bringing the suit, casting skepticism on the chances of success. The case centers on claims of a so-called “H1B only” hiring track—referring to the H-1B visa program for highly skilled foreign talent. Reuters
The legal landscape is running headlong into the auto industry’s drive for “eyes-off” Level 3 autonomy, where drivers can let the car handle things—until it tells them to get back on the wheel. “We can start saving them time immediately, and do it in a very affordable way,” Ford’s Doug Field said. But Bosch’s Paul Thomas isn’t convinced: “We don’t know if Level 3 ever makes financial sense.” Former Waymo chief John Krafcik was even more blunt: “the juice isn’t worth the squeeze.” Tesla’s Full Self-Driving tech still sits at Level 2, so drivers need to keep watching, but Elon Musk’s company has already rolled out a limited robotaxi service, aiming to bring it to a few more U.S. cities by the first half of 2026—setting up a head-to-head with Alphabet’s Waymo. Reuters
Analysts aren’t on the same page. GLJ Research stuck with its sell rating on Tesla this week, keeping that $25.28 target. In a note cited by Investing.com, the firm said markets remain far too bullish on what Tesla’s Optimus robot can actually deliver.
Yet with this stock, the threat lingers: autonomy risk is, at its core, legal risk. Just last week, a federal judge shot down Tesla’s bid to toss out a $243 million jury verdict stemming from a deadly 2019 accident involving Autopilot in a Model S. Tesla, for its part, is likely to appeal.
Market focus now shifts to Nvidia. The chipmaker reports after the U.S. close on Wednesday. Traders are keyed in on its results and forward guidance—any misstep or fresh optimism could either jolt or deflate the AI-driven run in tech-heavy stocks.
