New York, January 26, 2026, 09:51 ET — Regular session
- Tesla shares slipped roughly 1.8% early Monday, with investors bracing ahead of Wednesday’s quarterly earnings report
- Wall Street zeroes in on Full Self-Driving and robotaxi strategies, questioning if software can boost profits
- Wednesday’s Fed rate decision is set to inject fresh volatility into U.S. stocks
Tesla shares dropped 1.8% to $440.79 during early U.S. trading on Monday, with investors adjusting their positions ahead of the electric-vehicle company’s quarterly earnings report due later this week.
Tesla’s stock has dipped as investors brace for Wednesday’s earnings, eager to see if Elon Musk’s long-hailed self-driving ambitions are finally driving revenue growth, even as pressure mounts on the core EV business. Analysts tracked by LSEG forecast a 3.6% drop in Q4 sales and a 40% fall in adjusted profit, with revenue expected to decline 4%. Tesla’s market cap hovers around $1.49 trillion. “Investors are largely looking past the near-term fundamentals,” said Matt Britzman at Hargreaves Lansdown. Ken Mahoney of Mahoney Asset Management framed the debate: will “AI become revenue + profit?” Meanwhile, Futurum Equities strategist Shay Boloor noted Tesla is “trading near-term automotive margin for fleet scale.” (Reuters)
That blend is crucial now since Tesla plays as a split-screen trade: half carmaker, half autonomy wager. A weak report might slide if growth projections hold. But miss on both fronts, and the numbers shift fast.
Tesla plans to release its earnings after the market closes on Wednesday, January 28, followed by a Q&A webcast at 5:30 p.m. ET, the company announced. It reported delivering 418,227 vehicles in Q4 and 1,636,129 for the full year 2025. Additionally, Tesla deployed 46.7 gigawatt-hours of energy storage last year. (Tesla Investor Relations)
The Federal Reserve concludes its two-day policy meeting on Wednesday, with a statement set for 2 p.m. ET and a press conference following at 2:30 p.m., per the Fed’s calendar. (Federal Reserve)
U.S. stocks held steady in early trading Monday. The SPDR S&P 500 ETF edged up roughly 0.4%, while the Invesco QQQ crept higher by about 0.2%.
During Tesla’s call, investors are expected to drill down on Full Self-Driving (FSD), the driver-assistance tech that handles steering, braking, and acceleration but still needs a human behind the wheel. Market watchers want updates on timing, costs, and when the software might start boosting profits instead of just adding to expenses.
The other key focus is the car business. Investors want to see if demand is holding steady and whether Tesla can maintain margins while ramping up volume and betting more on subscriptions and services.
Risks lurk in the details. Regulatory green lights often drag, and a safety hiccup might stall broader adoption of advanced driver-assistance systems. Should the autonomy push falter, Tesla’s valuation offers little cushion against a typical auto-sector slump.
Wednesday afternoon brings the Fed decision, followed by Tesla’s earnings after the bell and Musk’s webcast. Traders will zero in on any clear updates that could shake up 2026 delivery forecasts, margins, or the autonomy timeline.
