New York, Jan 18, 2026, 05:49 EST — Market closed
- Shares of Tesla slipped 0.2% on Friday, closing at $437.50
- U.S. safety regulators have granted Tesla an additional five weeks to respond in the ongoing Full Self-Driving investigation
- CEO Elon Musk said Tesla’s AI5 chip design is “almost done,” just ahead of the Jan. 28 earnings report
Tesla shares slipped 0.2% to close at $437.50 on Friday, after U.S. auto safety regulators gave the company extra time to respond in a probe related to its Full Self-Driving system. 1
Timing is crucial. The scrutiny hits just as Tesla pushes investors to see software and autonomy as key growth drivers, beyond just car sales, with the next quarterly results approaching fast.
This week is shortened for U.S. markets. Both stock and bond trading will be closed Monday in observance of Martin Luther King Jr. Day, with normal hours returning on Tuesday. 2
The National Highway Traffic Safety Administration pushed back a deadline to Feb. 23 after Tesla requested extra time to manually sift through thousands of records for potentially relevant incidents. Tesla told regulators that 8,313 records still need review and it can handle about 300 daily.
The probe is part of a broader federal review of Tesla’s driver-assistance technology. In October, NHTSA launched a preliminary evaluation, then followed up in December with a sweeping data request covering complaints, crashes, and internal evaluations.
Full Self-Driving, despite the name, is actually a driver-assistance system. It manages tasks beyond basic cruise control but still demands that drivers remain attentive and ready to intervene.
Tesla’s chip and compute story also gained attention. Musk revealed Saturday that the AI5 chip design is “almost done,” while AI6 is just getting started. The company aims for a nine-month design cycle moving forward. 3
Talk like that can shift Tesla shares, even without much in the headlines, since investors often see self-driving advances—whether actual or anticipated—as a key driver of valuation.
Tesla’s next major milestone is its earnings report, due after market close on Jan. 28. Management will hold a Q&A webcast the same day. 4
Traders will be tuned into a few key points: margins, cash flow, and whether Tesla provides a clearer timeline for autonomy-related revenue. They’ll also watch for details on the costs of continuing to develop its own chips and software stack.
The car industry remains under pressure from competition. Tesla reported earlier this month that its fourth-quarter deliveries dropped 15.6% compared to the same period last year, with full-year deliveries also down. Rival automakers, notably China’s BYD, continue to gain ground in crucial markets. 5
There’s a risk, though. Should regulators expand the investigation, request additional data, or press for tweaks related to driver-assistance functions, Tesla might incur higher expenses, suffer further setbacks, or encounter new doubts over how fast it can roll out features investors see as key profit catalysts.
Looking ahead to the week, attention turns from the quiet holiday lull to two key dates: Tuesday, when U.S. markets reopen, and Jan. 28, when Tesla reports earnings. On a related note, Tesla faces a regulatory deadline on Feb. 23 for its critical response.
