In January, Cathie Wood’s ARK Innovation ETF trimmed its Tesla weighting by approximately 1.8 percentage points of net asset value, selling an estimated 150,000 shares over the first two trading weeks. Proceeds were redeployed into semiconductor leader Broadcom and European fintech Klarna, with the ETF adding roughly 50,000 shares of Broadcom and initiating a 0.6% position in Klarna. This rotation underscores growing fund manager skepticism around Tesla’s near-term growth trajectory and seeks to capture steadier revenue streams in chip manufacturing and digital payments.

Tesla heads into its January 28 earnings release facing heightened scrutiny after reporting Q4 deliveries of 418,227 vehicles—nearly 8,000 units below the Wall Street consensus of 426,000. Production totaled 434,358 units, leaving a narrow buffer for upside surprises. Analysts project that any shortfall in vehicle margins or delays in new factory ramp-ups in Mexico and Germany could trigger further downward revisions to full-year guidance, with consensus estimates forecasting 18% automotive gross margins and 50% growth in energy storage revenues.

Elon Musk confirmed on January 14 that Tesla will discontinue one-time purchases of its Full Self-Driving software effective February 14, shifting exclusively to a $99 per month subscription model. The move is designed to stabilize recurring revenue and mitigate legal liabilities tied to autonomous claims. With over 220,000 active FSD users currently on the one-time purchase plan, the transition could generate an incremental $260 million in annualized revenue if even half of existing customers convert to subscriptions.

Tesla’s India entry continues to underperform, with just 227 vehicle registrations in the 2025 calendar year due to import duties exceeding 100%. To stimulate demand, the company has introduced selective discounts of up to $3,500 off Model Y pricing for early adopters, representing a 6% reduction from current retail tariffs. Market analysts estimate that for every $1,000 price cut, demand could rise by 12%, suggesting that deeper incentives may be required to achieve Tesla’s target of 10,000 annual sales in the world’s fifth-largest auto market.