New York, Jan 25, 2026, 09:57 EST — Market closed
- Tesla shares ended the day at $449.06, slipping roughly 0.1%.
- Tesla shifted essential highway driver-assist functions to a $99/month Full Self-Driving subscription in the U.S. and Canada.
- Attention now shifts to the Jan. 28 results, where margins, free cash flow, and updates on autonomy will be key.
Tesla, Inc. shares closed Friday at $449.06, slipping roughly 0.1%. With U.S. markets closed over the weekend, all eyes turn to a busy week ahead for TSLA.
Tesla’s stock drew attention after the company removed certain driver-assistance features from new vehicles sold in the U.S. and Canada. Now, buyers who want self-steering on highways must subscribe to the $99-a-month Full Self-Driving (Supervised) package. CEO Elon Musk warned the subscription fee “would rise over time” as the technology advances. (Reuters)
The shift comes just days ahead of Tesla’s quarterly earnings report scheduled for Wednesday, Jan. 28, per its investor relations calendar. Tesla also released a sell-side consensus it compiled, projecting fourth-quarter revenue around $24.5 billion and adjusted, or non-GAAP, earnings of 44 cents per share. (Tesla Investor Relations)
Morgan Stanley analyst Andrew Percoco noted that the “stock reaction will depend on the incrementality of updates” related to robotaxi scaling and unsupervised FSD, among other factors. The firm also highlighted a risk that free cash flow — the cash remaining after operating costs and investments — could fluctuate significantly if capital spending rises. (Investing)
Musk continues to push the autonomy narrative. This week, he revealed Tesla has launched robotaxi rides in Austin without safety monitors onboard. At Davos, he said he aims to secure regulatory approval for the driver-supervised FSD in Europe and China as soon as next month. (Reuters)
With the updated configuration, Tesla continues to offer Traffic Aware Cruise Control, which maintains speed and distance from other vehicles. However, Autosteer, the lane-centering function, is no longer standard. Buyers seeking that capability must now subscribe to the full FSD package.
Tesla’s price hike ties into its broader strategy to boost recurring software income, beyond just selling cars. In October, CFO Vaibhav Taneja noted that 12% of Tesla buyers had already paid for FSD. The company also announced it will drop the option to buy FSD outright for $8,000 starting Feb. 14.
Yet this shift might backfire if drivers resist paying monthly for features they thought were included with their cars. Regulators could also step up their scrutiny of how driver-assistance systems are marketed. Reuters reported that California’s Department of Motor Vehicles has given Tesla a deadline to revamp its marketing—or risk having its retail sales license suspended.
Competition in the core EV sector shows no signs of easing, pushing Tesla to double down on software as more rivals enter the fray. Tesla’s sales dipped in 2025, handing the global EV sales lead to China’s BYD, Reuters reported earlier this month. (Reuters)
Macro factors might play a role as well. This week features a Federal Reserve policy announcement alongside earnings reports from several megacaps, a combination that often stirs up market volatility even if company-specific news is light, strategists noted. (Reuters)
Tesla traders are gearing up for Wednesday’s earnings and Q&A webcast at 5:30 p.m. ET, following the company’s post-close numbers. The focus will be on any updates for 2026 delivery targets and spending plans, along with signs of progress—and revenue potential—in its autonomy efforts. (Tesla Investor Relations)
