New York, Jan 21, 2026, 4:13 PM ET — After-hours
- Tesla shares climbed roughly 2.7% in regular trading, stepping back slightly from earlier gains close to 4.5%.
- Insurer Lemonade announced a 50% cut to pay-per-mile rates whenever Tesla’s Full Self-Driving is engaged, relying on Tesla’s telemetry data.
- CEO Elon Musk cautioned that early production of the Cybercab robotaxi and Optimus robot will be “agonizingly slow.” At the same time, Tesla pushed back against reports of staff reductions at its Berlin-area factory.
Tesla shares climbed 2.7% on Wednesday, tracking gains in the broader market amid renewed investor interest in its self-driving technology. The stock gained $11.46 to close at $430.71, having hit a peak of $437.97 during the session.
This shift is significant as Tesla’s focus pivots more on software and robotics. Traders now want to price in the potential earnings from autonomy—and they’re less willing to wait through lengthy discussions about quarterly unit sales.
That includes a fresh insurance angle. If safer driving actually lowers premiums, it could provide an early signal on whether Full Self-Driving can be marketed as more than just a feature and a promise.
Lemonade announced a 50% rate cut for Tesla (TSLA.O) drivers when the automaker’s Full Self-Driving (FSD) system is in control, citing data that shows fewer accidents in those scenarios. The insurer said Tesla is providing access to vehicle telemetry data, allowing it to distinguish miles driven by FSD from those driven by humans. The program kicks off in Arizona on Jan. 26 and will roll out to Oregon in February. FSD is classified as a Level 2 driver-assistance system; it can steer and brake but still demands driver supervision. U.S. regulators have previously probed crashes involving the software, Reuters reported. (Reuters)
CEO Elon Musk said early production of Tesla’s Cybercab robotaxi and Optimus humanoid robot would be “agonizingly slow” at first before picking up pace. He pointed to the number of new parts and steps as key to the ramp-up speed. The Cybercab, a two-seater without manual controls, is on track for volume production in 2026, Tesla has said. Optimus output should follow later that year. Musk’s remarks came as Reuters highlighted that much of Tesla’s roughly $1.39 trillion market value hinges on investor bets on self-driving and humanoid robots.
Tesla dismissed reports of a steep drop in staffing at its Berlin-area gigafactory over the past two years. The company emphasized it has no intention to scale back production or reduce permanent employees there. It described shifts in temporary labor as typical following the initial ramp-up phase. (Reuters)
Analysts are divided on the daily drivers behind Tesla’s stock. Truist’s William Stein cut his price target slightly, from $444 down to $439, while maintaining a Hold rating. He called the post-delivery rebound “better than feared” but urged investors to keep their eyes on AI initiatives, particularly Full Self-Driving (FSD), according to a note featured on TipRanks’ TheFly feed. (TipRanks)
The tape came alive as Wall Street’s major indexes surged in afternoon trading following U.S. President Donald Trump’s announcement that a framework deal on Greenland would halt tariffs set for Feb. 1, Reuters reported. (Reuters)
Yet the situation can shift fast. Insurance discounts don’t resolve the larger issue around liability and safety. Musk’s caution about a slow start for Cybercab and Optimus highlights just how much execution risk weighs on the autonomy bet.
Tesla’s quarterly report is next on deck. The company’s filing revealed it will publish fourth-quarter 2025 results after the market closes on Jan. 28, followed by a webcast at 5:30 p.m. ET. Investors will be digging into details on Full Self-Driving (FSD) progress, spending strategies, and Tesla’s commitments regarding the timelines for Cybercab and Optimus. (Sec)
