New York, Feb 17, 2026, 10:01 EST — Regular session.
- Tesla shares fell in early U.S. trading, tracking a broader slide in tech-linked names.
- Investors were weighing renewed “AI disruption” worries alongside geopolitics.
- Next macro test: U.S. PCE inflation data due Feb. 20.
Tesla shares fell about 2% on Tuesday, giving back some of last week’s gains as investors sold high-growth stocks after the long holiday weekend.
The pullback mattered because Tesla has been trading like a tech proxy as much as an automaker, and Tuesday’s tone was set early: the S&P 500 and Nasdaq opened lower as investors digested fresh unease about AI-driven disruption and headlines around U.S.-Iran talks. (Reuters)
“The markets are taking each sector one-by-one and stress testing their business models to see how resilient they would be to AI disruption,” Axel Botte, head of market strategy at Ostrum Asset Management, said. (Reuters)
In morning trade, Tesla was at $409.40, down $8.04 from its prior close of $417.44, according to market data. The stock traded as low as $407.80.
There was no new Tesla announcement on Tuesday, leaving investors to lean on a familiar mix of drivers: rates, risk appetite, and whether the market keeps rewarding big spending on AI and autonomy.
Still, Tesla’s software push remains a live theme. Chief executive Elon Musk said the company’s Full Self-Driving (FSD) driver-assist package would move to subscription-only after Feb. 14, with the system marketed as “Supervised” and requiring drivers to stay alert and intervene when needed. (Reuters)
A separate change this year also shifted some highway driver-assist features behind Tesla’s $99-a-month FSD subscription, part of a broader effort to grow software revenue as EV demand cools. (Reuters)
Tesla is also a retail favorite and has been prone to sharp swings, a dynamic that can amplify moves when sentiment turns. (Reuters)
But there are risks. Regulators have been scrutinising advanced driver-assistance systems, and the U.S. auto safety agency has an open investigation into Tesla vehicles equipped with FSD following reports of traffic-safety violations and crashes. (Reuters)
For now, the next catalyst may come from Washington rather than Palo Alto. Investors are watching the Federal Reserve’s next signal on rates and inflation, with the personal consumption expenditures (PCE) price data due Feb. 20. (Reuters)
