New York, February 19, 2026, 16:48 ET — Trading after the bell.
- Tesla shares edged 0.1% higher after hours as the company stripped “Autopilot” from its marketing language in California.
- Tesla faced a possible 30-day license suspension from the California DMV, which targeted both its dealer and manufacturer permits.
- Tesla noted initial progress on Cybercab production, pointing toward an April launch.
Tesla (TSLA.O) ticked up 0.1% to $411.71 in Thursday’s after-hours action, this coming after the company took “Autopilot” out of its California marketing to avoid a possible state suspension. Regular session trading saw shares move between $404.27 and $415.14, with volume landing near 36.6 million shares.
The California Department of Motor Vehicles said this week it won’t suspend Tesla’s dealer and manufacturer licenses for at least 30 days, after the company made changes and dropped “Autopilot” from its marketing in the state. That move lifts a short-term overhang for Tesla in its top U.S. market, at a time when EV demand has cooled following the end of major tax incentives. 1
DMV Director Steve Gordon cast the issue as one of consumer protection, saying, “The department is pleased that Tesla took the required action to remain in compliance with the State of California’s consumer protections.” That statement followed the agency’s reminder that drivers must stay attentive at all times. 2
This boils down to the broader debate around the real-world capabilities of Tesla’s driver assistance tech. Industry parlance: Level 2 autonomy—programs that handle steering and braking, but the driver can’t tune out. Tesla’s website, according to Car and Driver, is now listing “Autopilot” as “Traffic Aware Cruise Control,” while “Full Self-Driving” appears as “Full Self-Driving (Supervised).” 3
Tesla leaned into its autonomy pitch this week, announcing that the first production Cybercab—a two-door robotaxi without a steering wheel or pedals—had come off the line at its Austin, Texas gigafactory. Musk chimed in: “Congratulations to the Tesla team on making the first production Cybercab!” The company has targeted April for Cybercab production to begin. Regulatory approval remains an open question, though. Business Insider pointed out that Amazon’s Zoox needed federal exemptions to operate its small-scale public service. 4
Regulators aren’t easing up anywhere in the industry. New York Governor Kathy Hochul on Thursday scrapped a plan that would’ve opened the door to commercial robotaxi rollouts in smaller cities beyond New York City—a blow to Alphabet’s Waymo. The company warned its permission to run tests in New York City is set to run out March 31 unless officials grant an extension. 5
Tesla remains out of favor with investors, this time over doubts about whether its autonomy ambitions will actually deliver revenue rather than just buzz. The company’s last quarterly report came on Jan. 28. Since then, Tesla has doubled down on promoting robotaxis and robotics as its big-picture vision. 6
There’s a risk, though. Fresh restrictions on marketing language—or holdups in green-lighting a driverless vehicle—could weigh on a stock that’s already priced for quick progress on autonomy.
Right now, traders are watching to see if Tesla’s marketing tweaks move outside California. The Cybercab timeline is also in focus, with April shaping up as the next key date for this tape.
