New York, Jan 23, 2026, 11:33 ET — Regular session
- Tesla shares edged up roughly 0.2% late this morning, following a 4.2% surge on Thursday.
- Elon Musk indicated that Tesla might secure approvals for its driver-supervised Full Self-Driving feature in Europe and China as early as next month.
- Investors are eyeing next week’s earnings to get a read on margins and the pace at which Tesla can convert autonomy into steady revenue.
Tesla shares edged up about 0.2% to around $450.30 on Friday, holding steady after a big jump in the previous session fueled by renewed chatter about Full Self-Driving (FSD) and robotaxis. FSD remains Tesla’s driver-assistance system, but a human driver still needs to stay alert behind the wheel.
This shift is significant as Tesla bets more on software and automation to drive growth, with investors eager to gauge how much revenue FSD can generate beyond vehicle sales. The bottleneck remains regulatory approval outside the U.S.
This comes as the company’s robotaxi trials push into more challenging territory and Tesla adjusts its driver-assistance options for new customers. Any hint that Tesla can convert “future tech” into immediate subscriptions usually moves the stock sharply, one way or the other.
At the World Economic Forum in Davos, Musk said Tesla aims to secure approval for its driver-supervised FSD in Europe “hopefully next month,” with China expected to follow on a similar timeline; Dutch regulator RDW plans a decision in February. Tesla is pushing this as it works to boost software revenue amid slowing vehicle sales. Reuters reported Tesla registrations in California dropped 11.4% in 2025, while deliveries fell for the second year in a row, ceding the top EV spot to China’s BYD. FSD remains controversial since it’s an advanced driver-assistance system that still demands driver attention. Tesla shareholder Ken Mahoney of Mahoney Asset Management stressed that Optimus needs “credible evidence of scalable manufacturing” and a clear regulatory path. 1
Tesla has dropped “Autopilot,” its entry-level driver-assistance feature, as a standard inclusion on new North American models, steering buyers toward the pricier Full Self-Driving (Supervised) package, TechCrunch reported. Elon Musk said the FSD subscription will get more expensive as the software improves. The company plans to end the one-time $8,000 purchase option by Feb. 14, shifting customers to a $99 monthly subscription instead.
Tesla’s rebranding move follows regulatory heat in California, its largest U.S. market. In December, the California Department of Motor Vehicles ruled that Tesla’s marketing of “autopilot” and “Full Self-Driving Capability” was deceptive. The DMV gave Tesla 60 days to fix the “autopilot” issue or risk a 30-day dealer license suspension. 2
Tesla has begun offering robotaxi rides in Austin without a human safety driver in the front seat, following a limited launch last June that required safety operators onboard, according to TechCrunch. Ashok Elluswamy, Tesla’s AI lead, said the rollout includes “a few” unsupervised vehicles integrated within a larger fleet that still carries safety monitors. TechCrunch also noted some rides seemed to be trailed by a chase car. This move puts Tesla more directly alongside rivals like Alphabet’s Waymo and Amazon-backed Zoox, though on a much smaller scale. 3
Musk linked Tesla’s autonomy push to its humanoid-robot project. At Davos, he claimed Optimus robots might reach consumers by 2027, and added, “By the end of next year I think we’d be selling humanoid robots to the public,” according to Investopedia. 4
The downside risk is clear: regulators might drag their feet on approvals, and a major safety incident could ramp up scrutiny—just as Tesla ramps up subscriptions and pushes further automation. Tesla’s stock reacts sharply to autonomy news, which makes the upcoming earnings report even more unpredictable.
Investors are eyeing Tesla’s fourth-quarter earnings and webcast set for after the market closes on Jan. 28. Traders will focus on margin trends, any updates on FSD adoption and pricing, and whether Tesla plans to extend the Austin robotaxi pilot beyond its limited initial launch.
