New York, February 19, 2026, 16:48 ET — After-hours
- Tesla shares up 0.1% after hours after dropping “Autopilot” wording in California marketing
- California DMV had threatened a 30-day suspension of Tesla’s dealer and manufacturer licenses
- Tesla also flagged early Cybercab production progress ahead of an April start date
Tesla (TSLA.O) shares were up 0.1% at $411.71 in after-hours trading on Thursday, after the company removed the “Autopilot” label from its California marketing to head off a threatened state suspension. The stock swung between $404.27 and $415.14 in the regular session on volume of about 36.6 million shares.
California’s Department of Motor Vehicles said this week it would not suspend Tesla’s dealer and manufacturer licenses for 30 days after the automaker took corrective action and stopped using “Autopilot” in marketing in the state. The decision eases a near-term risk in Tesla’s biggest U.S. market as EV makers deal with softer demand after key tax credits expired. (Reuters)
DMV Director Steve Gordon framed the dispute as a consumer-protection matter. “The department is pleased that Tesla took the required action to remain in compliance with the State of California’s consumer protections,” Gordon said in a statement, after the agency said drivers still need to stay alert behind the wheel. (Los Angeles Times)
The issue sits on top of the bigger fight over what Tesla’s driver aids can really do. The systems are what the industry calls Level 2 autonomy — software that can steer and brake, but still requires the driver to stay attentive — and Tesla’s site now shows “Autopilot” as “Traffic Aware Cruise Control” and “Full Self-Driving” as “Full Self-Driving (Supervised),” Car and Driver reported. (Car and Driver)
Tesla also used the week to push its autonomy narrative. The company said the first production Cybercab — a two-door robotaxi with no steering wheel or pedals — rolled off the line at its Austin, Texas gigafactory; Musk added, “Congratulations to the Tesla team on making the first production Cybercab!” Tesla has said it expects to start Cybercab production in April, but the vehicle still faces regulatory hurdles, and Business Insider noted Amazon’s Zoox has needed federal exemptions to run limited public service. (Business Insider)
The regulatory backdrop is tightening across the sector, not just for Tesla. New York Governor Kathy Hochul on Thursday pulled a proposal that would have allowed commercial robotaxi services in smaller cities outside New York City, a setback for Alphabet’s Waymo; the unit said its authority to test in New York City will expire on March 31 if not extended. (Reuters)
Tesla is still in the market’s penalty box for a different reason: investors are waiting for proof that the autonomy pitch can turn into revenue, not just headlines. The company last reported quarterly results on Jan. 28 and has leaned harder since then on robotaxis and robotics as the long-term story. (Tesla Investor Relations)
But there is a downside case. Any new clampdown on marketing claims, or delays in approvals for a vehicle without human controls, could pressure a stock whose valuation leans heavily on autonomy arriving sooner rather than later.
For now, traders are watching for follow-through: whether Tesla’s marketing changes spread beyond California, and whether its Cybercab plans hold as April approaches — the next date on the calendar that matters for this tape.
