Tesla stock declined 3.0% on February 23, 2026, amid several reported developments. The company faces renewed debates over its self-driving technology, with industry experts questioning the practicality of Level 3 autonomous systems. Tesla's Full Self-Driving system remains at Level 2 and requires driver attentiveness. The company is expanding a limited robotaxi service to select U.S. cities in the first half of 2026. U.S. electric vehicle sales dropped 30% year-over-year in January. Tesla is suing the California Department of Motor Vehicles to overturn a ruling that found the company engaged in false advertising regarding its Autopilot and Full Self-Driving features. The company discontinued Autopilot in the U.S. and Canada in January following the DMV ruling. Additionally, Uber announced a new Autonomous Solutions platform for robotaxi developers, intensifying competition in the autonomous vehicle sector.
Read full analysisTesla stock declined 3.0% on February 23, 2026, amid several reported developments. The company faces renewed debates over its self-driving technology, with industry experts questioning the practicality of Level 3 autonomous systems. Tesla's Full Self-Driving system remains at Level 2 and requires driver attentiveness. The company is expanding a limited robotaxi service to select U.S. cities in the first half of 2026. U.S. electric vehicle sales dropped 30% year-over-year in January. Tesla is suing the California Department of Motor Vehicles to overturn a ruling that found the company engaged in false advertising regarding its Autopilot and Full Self-Driving features. The company discontinued Autopilot in the U.S. and Canada in January following the DMV ruling. Additionally, Uber announced a new Autonomous Solutions platform for robotaxi developers, intensifying competition in the autonomous vehicle sector.
Tesla is the world's largest electric vehicle manufacturer by market capitalization, increasingly pivoting toward robotics, AI, and autonomous driving under CEO Elon Musk's vision to transform it from an automaker into a technology platform company. The company is discontinuing its premium Model S and Model X lines while ramping up Cybercab production and expanding its Austin-based robotaxi service. Today's decline reflects the tension between that ambitious strategic pivot and near-term headwinds including collapsing European sales, rising autonomous driving competition from Uber and Waymo, and regulatory friction over its Full Self-Driving technology.