New York, February 20, 2026, 10:09 EST — Regular session
- Tesla shares slipped, with investors weighing a lower-priced Cybertruck along with new rounds of price cuts.
- A federal judge has let stand a $243 million verdict related to an Autopilot crash.
- Tesla’s autonomy pitch is up against stubborn margin worries as traders look ahead to March numbers.
Tesla dropped around 1% Friday, with shares trading down $4.04 at $407.67 by mid-morning. The move came as the EV giant introduced a lower-priced Cybertruck and trimmed prices on its premium model—a shift likely to squeeze margins once again.
Timing is crucial here. Tesla’s auto segment remains the key revenue driver, and shifts in pricing hit profit per vehicle fast — that’s the margin after manufacturing and delivery.
This week, investors are on edge about anything threatening earnings. Tesla faces that heat on two fronts: fresh price cuts and ongoing questions swirling around the capabilities—and safety—of its driver-assistance software.
Tesla rolled out a dual-motor all-wheel-drive Cybertruck in the U.S. late Thursday, setting the price at $59,990. The tri-motor Cyberbeast saw a sizable cut, now listed at $99,990 instead of $114,990. CEO Elon Musk told customers the $59,990 price would last “only for the next 10 days.” Reuters also flagged that a “Luxe Package” bundle could be dropped, with the EV market turning colder since September’s end to the $7,500 federal tax credit. (Reuters)
Legal pressure ratcheted up Friday. In Miami, a federal judge let stand a $243 million jury award against Tesla over a deadly 2019 crash with an Autopilot-enabled Model S, saying the verdict was “more than supported” by the evidence. (Reuters)
California regulators have turned up the heat on Tesla over its branding, according to Reuters. The automaker narrowly sidestepped a 30-day suspension of its dealer and manufacturer licenses in the state after pulling the word “autopilot” from its local marketing materials. Despite the names, both Autopilot and “Full Self-Driving” are driver-assistance systems — they’ll handle steering, braking, and lane changes under certain conditions, but a human driver still needs to keep watch. (Reuters)
No lift from the wider market. U.S. equities edged down after fresh data revealed a notable slowdown in fourth-quarter growth, plus a December inflation uptick. Tesla dropped, joining other large-cap growth stocks in the red. “A little bit lower growth … and a little bit higher inflation … is generally not a good combination for the stock market,” said Steve Wyett, chief investment strategist at BOK Financial. (Reuters)
The risk is clear enough — heavier discounting could squeeze auto margins, and folks are already wary of a situation where Tesla moves more cars but fails to boost profits. Throw in another courtroom setback or stricter marketing curbs, and suddenly it’s a lot tougher to pitch that “software upside” narrative for Tesla.
Traders now have their eyes on whether Tesla will push out the 10-day Cybertruck pricing window, and if the company will ramp up efforts to boost software and service revenue as sticker prices fall. Updates on appeals in the Autopilot case—or fresh regulatory moves tied to driver-assistance claims—could also trigger swift moves in the stock.
Setting aside Tesla for a moment, traders are now looking ahead to March 13, when January’s Personal Consumption Expenditures (PCE) inflation numbers are expected. That’s the Fed’s go-to metric, and publication was pushed back due to last year’s shutdown. (Reuters)
