Tesla shares fell into negative territory on Friday as investors reduced exposure ahead of the electric‐vehicle maker’s fourth-quarter 2025 earnings report, scheduled for release on January 28 after market close. Volume spiked 18% above its 30-day average as profit‐taking intensified. Analysts note that consensus delivery projections of approximately 550,000 vehicles for the quarter leave little room for significant upside surprises, prompting many funds to lock in gains.

The U.S. auto safety regulator has granted Tesla a five‐week extension to respond to an investigation into whether its Full Self‐Driving (FSD) system violated traffic laws while engaged. Tesla now has until early March to submit data and internal testing logs. The probe covers over 100,000 vehicles and follows last year’s recall of more than 116,000 units due to sensor miscalibration issues.

Despite broad strength in technology stocks, Tesla rose just 0.6% over the past week and remains down 2.5% year‐to‐date. Cathie Wood’s flagship fund liquidated $38.5 million in Tesla shares on January 14, reallocating proceeds into semiconductor and fintech positions. Meanwhile, delivered vehicle volumes in India remain one‐third below initial projections after four months on market, and Canadian sales plunged 60% in 2025. These regional headwinds, combined with a pending shift to a $99/month FSD subscription next month, have failed to reignite bullish momentum.

Tesla’s relentless sales slide contrasts sharply with a global electric‐vehicle market growing at over 30% annually. Investor Ross Gerber publicly attributed part of the U.S. EV rollback to the company’s leadership decisions, highlighting delayed Model 2 development and increased competition from legacy automakers. With over 90% of Tesla revenue still tied to vehicle deliveries, concerns mount that the company’s growth trajectory may falter as mass‐market EV alternatives proliferate.