In the third quarter of 2026, billionaire investor Peter Thiel reduced his stake in Tesla by selling a substantial portion of his existing holdings, according to his Form 13F filing. While he completely exited his position in Nvidia during the period, Thiel’s Tesla shares were cut by roughly 40%, even as the electric-vehicle maker delivered just over 450,000 vehicles in Q3. This strategic pivot redirected capital toward larger AI application plays like Microsoft and Apple, underscoring Thiel’s view that software-driven AI winners may outperform semiconductor hardware suppliers. His reduction in Tesla exposure has fueled debate among institutional investors about whether the EV leader’s growth trajectory justifies its valuation relative to broader AI bets.

With the expiration of federal EV tax credits at the end of Q3, Tesla widened its lead in the US electric-vehicle market, claiming 59% share in the fourth quarter, up from 41% in Q3, per Cox Automotive estimates. Tesla delivered approximately 138,000 EVs in the quarter, maintaining production efficiency and competitive pricing despite the loss of consumer subsidies. By contrast, traditional automakers—Ford at 6% share and Rivian at 4%—struggled to achieve scale, and General Motors posted just over 10% share while absorbing $6 billion in Q4 charges tied to EV plan reductions. Tesla’s volume-driven cost advantages and optimized assembly lines continue to undercut rivals now facing slim margins without government support.

Tesla sold 20,237 Cybertrucks in the US in 2025, a 50% decline from the previous year and wildly below Elon Musk’s 250,000-unit annual target. Quality recalls—including accelerator-pedal entrapment and off-road light-bar detachment—have dogged the stainless-steel pickup since its 2023 launch. Retail pricing, which started north of $79,000 in early production runs, has also deterred mainstream buyers who initially reserved more than one million units. Limited rollouts in North America and the Middle East, coupled with vandalism reports and production bottlenecks, have left Tesla’s flagship truck contributing negligibly to overall delivery growth and raising questions about its long-term volume potential.