New York, January 21, 2026, 10:09 (EST) — Regular session
Tesla (TSLA.O) shares climbed about 1% to $423.32 in early trading Wednesday after CEO Elon Musk warned that initial production of the Cybercab robotaxi and Optimus humanoid robot will be “agonizingly slow” before accelerating. The stock has fluctuated between $417.53 and $424.21 during the session. 1
The remark comes at a tense moment for Tesla. Investors have been valuing the company based on future bets like autonomy and robotics, areas still missing from the income statement — leaving little tolerance for vague timelines.
The market’s focus has shifted—investors are weighing Tesla’s value if those projects come through but with higher costs and delays. With earnings out next week, the Q&A session is where traders expect the real insights, not just the headline numbers.
Tesla bounced back Wednesday after dropping sharply the day before, when Wall Street hit its worst daily decline in three months amid worries over President Donald Trump’s new tariff threats connected to Greenland. On Tuesday, Tesla’s stock fell 4.2%, Barron’s reported. 2
Musk’s post on X aimed to temper expectations following online buzz about a rapid rollout. The Cybercab, a two-seater, is built without manual controls like a steering wheel or pedals. Musk pointed out that new components and manufacturing processes are dragging the initial production pace.
Tesla’s move into robotaxis places it in a crowded field alongside Alphabet’s Waymo and other well-funded self-driving contenders. The real prize isn’t just selling cars; it’s about earning from paid miles, software subscriptions, and fleets operating nonstop.
Morgan Stanley analyst Andrew Percoco warned that Tesla’s next leg could depend heavily on the “incrementality of updates” around scaling robotaxi and Cybercab, rolling out the “Unsupervised” Full Self-Driving system, Optimus Gen 3, and the AI5 chip program. He projected deliveries hitting 1.6 million vehicles in 2026 but flagged a potential $1.5bn free cash flow burn that year, driven by higher capital expenditures. 3
Another risk looms: Tesla’s ambitious bets face hurdles from both regulators and the laws of physics. A new safety issue — or even just a slower ramp-up — could delay progress by quarters rather than weeks.
Right now, the focus is on what’s ahead, not what’s behind us. Investors want clearer signals on the robotaxi launch, the pace at which Tesla can scale up Optimus production, and if expenses will outpace revenue growth.
Tesla will release its fourth-quarter results after the market closes on Jan. 28, followed by a webcast Q&A at 5:30 p.m. Eastern, the company announced. 4
