New York, Feb 3, 2026, 16:25 EST — After-hours
Tesla’s stock barely moved in after-hours trading Tuesday, shortly after the company unveiled a new all-wheel-drive Model Y variant priced at $41,990 on its U.S. website. Shares ticked up 0.1% to $421.83, having fluctuated between $413.69 and $428.42 during the day. Rivian dipped 0.2%, while Lucid climbed 2.0%. This launch comes on the heels of Tesla’s October introduction of cheaper “Standard” Model Y and Model 3 versions, roughly $5,000 less than previous base prices, following the September expiration of the $7,500 federal EV tax credit under the Trump administration. Analysts caution that a shift toward more affordable models could squeeze margins, or profit per car. (Reuters)
The timing is crucial as Tesla relies on pricing and trim adjustments as its fastest tool to protect demand. Investors are trying to figure out if these shifts aim to broaden the customer base or simply cover up a weaker order backlog.
The Model Y is at the heart of this debate. Should the new AWD version attract customers away from the cheapest trim, it could boost the revenue mix. But if it mainly leads to deeper discounts, the near-term outlook might tighten.
The market turned shaky Tuesday. The S&P 500 dropped 0.85%, while the Nasdaq Composite slipped 1.42% amid concerns AI might threaten software companies, Reuters reported using early data. The Dow Jones Industrial Average also dipped, losing 0.35%. (Reuters)
Tesla investors were also taking in another Musk headline. Elon Musk revealed SpaceX has acquired his AI startup xAI in a deal that values SpaceX at $1 trillion and xAI at $250 billion, Reuters reported. Musk described it as “not just the next chapter, but the next book.” PitchBook analyst Ali Javaheri added, “Starlink was already a cash flow engine.” (Reuters)
This matters for Tesla since its stock remains tied as much to autonomy and AI buzz as to vehicle sales. Major shifts elsewhere in Musk’s empire can fuel that narrative—and keep governance issues in the spotlight.
The risk remains clear: budget models could squeeze automotive profits unless Tesla slashes costs fast or boosts higher-margin software sales. If demand fails to pick up, investors face lower prices without any volume gains.
Traders are set to monitor Tesla’s website closely in the next session for updates on stickers, financing offers, and delivery timelines. They’ll also be watching for clues on whether the AI-driven selloff hitting parts of the tech sector is gaining momentum or starting to fade.
Wall Street Horizon lists Tesla’s upcoming earnings date as unconfirmed, currently set for Tuesday, April 21, 2026, after market close. Traders will watch this closely to gauge if pricing adjustments are balancing demand or squeezing margins. (Wallstreethorizon)
