New York, Feb 16, 2026, 10:01 EST — The market was closed.
- Tesla shares edged up about 0.1% to finish Friday at $417.44.
- U.S. stock markets are closed Monday for Presidents Day. Trading picks up again Tuesday.
- Tesla’s latest moves have investors circling back to an old debate—how much weight to give its software and self-driving ambitions against the near-term risks to margins and execution.
Tesla (TSLA.O) finished Friday at $417.44, up just 0.1%. U.S. markets were shut Monday for Presidents Day, with trading set to pick back up Tuesday.
Tesla’s recent frenzy of headlines has left the stock in limbo, as investors weigh a business model shifting hard toward software and robotics—well beyond just cars. Coming up, the next session could force traders to decide: stick with the narrative, or push for faster results on revenue and margins.
Elon Musk says Tesla’s “Full Self-Driving (Supervised)” option will no longer be available for a one-time fee after Feb. 14; instead, customers will need to go with a monthly subscription. The FSD feature, despite its branding, is still just an advanced driver-assistance tool—drivers have to pay attention and be ready to take over at any moment. X (formerly Twitter)
Tesla shares have slipped roughly 3% since the Jan. 28 close—right after earnings—through Friday, using historical price data. That drop might seem tame, but it’s been anything but a smooth ride.
Tesla’s Jan. 28 earnings report revealed a $2 billion investment in Elon Musk’s AI venture xAI—and annual revenue on track to drop roughly 3% in 2025, marking the first year-on-year decline for the company. Executives said they plan to double down on autonomy and robotics, updating investors on the new focus.
Just a day after, Tesla put forward a hefty capital spending plan—about $20 billion slated for 2026. The company is allocating funds for factories focused on its autonomous “Cybercab,” the Optimus humanoid robots, battery operations, and other projects. That price tag looms large, raising questions about whether cash flow can keep up with the company’s expansive ambitions. Reuters
Tesla rolled out a fresh Model Y option in the U.S. back in early February, setting the sticker price at $41,990. It’s another sign that pricing remains central to the car game — and volume still hinges on it. Sure, slashing prices and launching new trims may stir up demand, but they also take a bite out of margins.
Tesla’s been working to expand its software play beyond the U.S. Borders. Last week, Tencent Cloud announced it’s teaming up with Tesla to roll out WeChat-connected features in China. The update—delivered over the air—applies to Model 3 and Model Y vehicles.
Volkswagen edged past Tesla to claim the title of Europe’s biggest seller of all-electric vehicles in 2025, according to data from JATO Dynamics. That shuffle follows China’s BYD grabbing the global EV crown from Tesla last year.
“For 2026, you’re essentially seeing if AI becomes revenue + profit, not just spend as it is mostly now,” said Ken Mahoney, chief executive at Mahoney Asset Management, which owns Tesla stock, speaking to Reuters before the company posted results. Reuters
But there’s another side to this trade. Tesla’s bigger bet on selling driver-assistance features and self-driving tech means regulators and lawyers will be quick to pounce if safety issues or accidents emerge. And with spending climbing, softer demand for vehicles would leave earnings more exposed to disappointment.
Tesla will be in focus Tuesday as U.S. markets come back online post-holiday, with investors eyeing updates on software pricing and demand, plus any clues about the cash burn tied to its 2026 expansion plans. Because of the holiday, Monday’s Federal Reserve statistical releases will hit Tuesday as well, adding fresh inputs to rate forecasts that have been swaying high-growth stocks lately.
