Tesla Inc (NASDAQ:TSLA) shares are trading lower on Wednesday, pulling back after hitting all-time highs on Tuesday.
What To Know: Tesla shares surged to record levels on Tuesday, with momentum rising into the close as excitement grows around the company's autonomous driving ambitions.
• Tesla stock is showing notable weakness. Why is TSLA stock falling?
CEO Elon Musk confirmed this week that Tesla has begun testing its robotaxis in Austin with no one inside the vehicles.
The company first introduced the platform in June using modified Model Y cars equipped with Full Self‑Driving (FSD) and a human "safety monitor" in the passenger seat. Over the weekend, Musk posted on X that the cars are now being tested with "no occupants in the car."
Wedbush analyst Dan Ives, a longtime Tesla bull, said 2026 is shaping up to be a "monster year" for the company, pointing to progress in autonomy and robotics. He believes Tesla could reach a $2 trillion market cap by 2026, with a bull‑case scenario of $3 trillion, and maintains an Outperform rating with a Street‑high price target of $600.
Adding to the Musk ecosystem, reports suggest SpaceX could go public next year at a valuation of around $1.5 trillion. Ives noted that such a move would further expand opportunities for Tesla investors, while the broader AI revolution is still in the early stages of what he sees as an eight‑to‑10‑year buildout.
Meanwhile, Tesla faces regulatory challenges in California. A judge ruled late Tuesday that the company engaged in "deceptive marketing" around its Autopilot and Full Self‑Driving systems, ordering a 30‑day suspension of its license to sell and produce cars in the state, Electrek stated.
The California DMV later clarified that Tesla will have 60 days to address the issues before any suspension takes effect. The court described the term "Full Self‑Driving" as "unambiguously false and counterfactual." Tesla responded by saying, "sales in California will continue uninterrupted.”
TSLA Price Action: Tesla shares were down 4.62% at $467.23 at the time of publication on Wednesday. The stock is approaching its 52-week high of $495.28, according to Benzinga Pro.
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