New York, Feb 23, 2026, 07:01 EST — Premarket
- Tesla shares were little changed ahead of the open after Friday’s close.
- Broader U.S. futures slipped after President Donald Trump announced a new 15% global tariff.
- Investors are weighing the next phase of automated driving and the liability that comes with it.
Tesla shares were up $0.14 at $411.82 in premarket trading on Monday, after ending the last session at $411.68.
The stock was moving with a softer tape. U.S. index futures dipped after President Donald Trump announced a 15% global tariff, reviving questions about supply chains and costs for companies that build and sell globally. (Reuters)
Separately, a Reuters report spotlighted a growing split in the auto industry over “eyes-off” driving — so-called Level 3 systems that let drivers look away under limited conditions but require them to take back control when prompted. Former Waymo CEO John Krafcik said the “juice isn’t worth the squeeze,” while Bosch North America president Paul Thomas told Reuters: “We don’t know if Level 3 ever makes financial sense.” The report said most systems on the road, including Tesla’s Full Self-Driving, are still Level 2, meaning drivers must keep watching the road; Tesla has launched a small robotaxi service and plans to expand to a handful of U.S. cities in the first half of 2026, competing with Alphabet-owned Waymo. (Reuters)
That matters for Tesla because the stock trades as a high-beta bet on growth, not just an automaker. When macro headlines hit risk appetite, it tends to show up first in names priced for what comes next.
For now, what comes next is still messy. Tesla has talked up autonomy for years, but the industry’s intermediate step — hands and eyes off in narrow situations — has proved expensive, hard to scale and awkward to explain to drivers.
The handoff problem is the sore spot. If the car asks for control back too late, it is a crash story; if it asks too often, customers stop using it. Either way, the legal bill can land at the manufacturer’s door.
Traders also keep an eye on competition that is arriving from different angles. Traditional carmakers have tested Level 3 in limited forms, while Chinese brands are pushing advanced driver-assist features into sticker prices, tightening the squeeze on subscription-style revenue.
Tesla’s near-term tape, though, could be simpler: tariff headlines and the broader tech mood. The company has little shelter if a fresh trade fight dents consumer confidence or adds another layer of uncertainty around global sourcing.
One risk for bulls is that autonomy does not translate into durable margin. Development costs are high, regulators move slowly, and any high-profile safety setback can reset the timeline.
The first test is the cash session open later Monday, with investors watching whether tariff uncertainty keeps pressure on growth stocks and whether Tesla can hold recent levels without fresh company-specific news.
