Tesla shares dropped to $475.19 after hours on December 27, 2025, down 2% from levels near $485 earlier in the week, fueled by unsupervised robotaxi testing progress in Austin but offset by a California DMV proposal to suspend licenses over Autopilot marketing and ongoing NHTSA scrutiny into vehicle safety. Q4 delivery figures, due January 2, remain below expectations.
With U.S. markets closed for the weekend following Christmas, Tesla Inc. (NASDAQ: TSLA) traded at $475.19 after hours on December 27, down 2.10% from Friday's close. This pullback from the prior week's $485 levels reflects mixed signals: accelerating autonomy efforts versus intensifying regulatory hurdles ahead of Q4 deliveries.
Tesla advanced its robotaxi ambitions, with CEO Elon Musk confirming tests of fully driverless vehicles sans front-seat safety monitors in Austin—progressing past geo-fenced operations requiring oversight. This supports Musk's year-end unsupervised goal. Tesla AI head Ashok Elluswamy shared test footage, and Morningstar analyst Seth Goldstein told Reuters it aligns with expectations, though pricing, disengagement data, and permits are needed for profitability. Alphabet's Waymo, by contrast, runs 2,500+ robotaxis delivering 450,000 paid rides weekly.
Regulatory challenges escalated. Building on the NHTSA's recent probe (Defect Petition DP25002) into emergency door releases on 179,000+ 2022 Model 3s, California DMV adopted a judge's recommendation for a 30-day suspension of Tesla's sales and manufacturing permits over allegedly misleading 'Autopilot' claims that features demand driver attention; sales suspension stayed for 90 days.
Demand softened, with November U.S. sales plunging 23% to 39,800 units—lowest since January 2022—after the $7,500 EV tax credit ended. Q4 estimates from UBS and New Street Research hold at 415,000 vehicles versus 440,000 consensus, pressured by competition despite cheaper Model 3/Y 'Standard' variants ($5,000-$5,500 less). Numbers report January 2, 2026.
Analyst views diverged: Wedbush's Dan Ives sees 2026 as autonomy's 'defining year,' while Morgan Stanley cut to Hold on stretched valuations. Tesla trades above 200 times forward profits, underscoring its story-driven premium.
