NEW YORK, Feb 3, 2026, 10:47 AM EST — Regular session
- Tesla shares gained roughly 0.5% during early trading
- The company has introduced a new $41,990 all-wheel-drive Model Y variant in the U.S.
- January European car registrations reveal uneven demand, marked by steep declines in Norway and France
Tesla (TSLA.O) shares climbed roughly 0.5% to $423.9 in early Tuesday trading following the launch of a new all-wheel-drive Model Y variant, priced at $41,990 in the U.S. The stock was last seen up $2.10 from Monday’s close. (Reuters)
The new trim shifts pricing back into focus for Tesla’s near-term outlook. Investors want to see if the company can hold onto volume in a cooling EV market without further margin erosion.
Demand signals from Europe remained patchy. January registrations, a sales proxy, surged 70% in Spain to 456 cars and rose 26% in Sweden to 512. Denmark saw a modest 3% increase to 458, while Italy jumped 75% to 713. But Norway’s registrations plunged 88% to 83, and France dropped 42% to 661. Portugal, Belgium, and the Netherlands also recorded declines. Tesla’s European market share shrank 27% last year, as Chinese competitor BYD ramped up pressure. (Reuters)
Italy’s transport ministry reported a 75% jump in Tesla registrations for January compared to last year, even as the automaker’s total sales in the country fell 18% in 2025. According to ministry data, Tesla registered 12,847 cars in 2025, down from 15,650 in 2024. (Reuters)
Tesla’s new Model Y update comes after it rolled out lower-priced “Standard” versions of its top sellers. Since the U.S. discontinued the $7,500 federal EV tax credit in September, the company has relied heavily on pricing adjustments and incentives, as that change bumped up the effective cost for many consumers.
But the trade-off is clear. Boosting low-priced vehicle sales can cut into profit per unit unless manufacturing costs drop or higher-margin software and services step in to compensate.
Investors are watching Elon Musk’s broader corporate empire closely. On Monday, Musk announced SpaceX’s acquisition of his AI startup xAI, sparking fresh concerns about governance and potential overlaps within his group, which includes Tesla. “Starlink was already a cash flow engine,” noted Ali Javaheri, senior emerging spaces analyst at PitchBook. (Reuters)
Macro factors are also at play. The U.S. Bureau of Labor Statistics announced the January employment report will be postponed due to a partial government shutdown. It had originally been set for release on Feb. 6 at 8:30 a.m. ET. (Reuters)
Risks remain two-sided for TSLA. Should price-driven demand falter or rivals tighten their grip in Europe, the recent rally in the stock might not hold up for long.
Traders are eyeing U.S. inflation next, with the January Consumer Price Index set for release on Feb. 11 at 8:30 a.m. ET. Attention will also focus on when the postponed jobs report will finally drop. (Bureau of Labor Statistics)
