Tesla (TSLA) stock continued to decline today after the company raised prices on its popular Model Y vehicles in the U.S. over the weekend. TSLA stock is down 3% in early trading today after falling 2.9% on Monday, as investors worried that higher prices could signal rising costs and pressure on margins.
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Meanwhile, Elon Musk also faced another setback in his dispute with Sam Altman after a federal jury rejected Musk’s claims that OpenAI abandoned its original public-benefit mission under Altman’s leadership. This added to negative sentiment around Tesla shares.
Tesla’s Stock Performance
TSLA has had a mixed start to 2026 so far, with the stock trading under pressure and down more than 8% year-to-date.
Notably, the stock declined after TSLA reported its Q1 2026 results in April. While the quarter showed strength in some areas, concerns over rising costs overshadowed the overall performance. For context, TSLA reported an automotive gross profit margin of 21% in Q1 2026, up from 14% a year earlier. However, it still remains well below its peak of 32% in 2022, highlighting ongoing margin pressure despite year-over-year improvement.
Overall, investor sentiment has been weighed down by concerns around pricing strategy, margin pressure, and slowing momentum in the EV market amid rising competition. Recent price adjustments and uneven demand trends have also added to volatility in the stock.
What Lies Ahead for Tesla
Importantly, TSLA doesn’t always trade purely on EV sales anymore. Investors are increasingly focused on its AI ambitions, including robotaxis and robotics. Still, vehicle sales remain the company’s biggest business. As a result, despite the weakness, TSLA remains a closely watched stock because of its long-term potential in autonomous driving and AI-related technologies.
At the same time, analysts expect U.S. EV demand to stay weak, meaning Tesla may rely more on its Full Self-Driving (FSD) system to support future growth and volumes.
Recently, Musk said fully self-driving cars without human monitors could become more common later this year. He also stated that “90% of all distance driven will be driven by AI within a decade.” Tesla also plans to expand its autonomous driving rollout into more U.S. regions, aiming to scale beyond limited test areas and increase real-world usage.
Is Tesla a Good Stock to Buy?
On Wall Street, analysts have maintained a neutral stance on Tesla stock. According to TipRanks, TSLA stock has received a Hold consensus rating, with 12 Buys, 12 Holds, and five Sells assigned in the last three months. The average price target for Tesla shares is $403.86, suggesting a downside of 1.5% from the current level.
