Key Takeaways
- Tesla stock received an upgrade from DZ Bank to Hold from Sell, with a $385 price target set on Friday.
- Shares declined 6.1% during the week and have fallen 17% since the start of the year, dropping in 11 of the last 13 weeks.
- First quarter 2026 results exceeded projections, but the company increased capital expenditure plans to $25 billion from $20 billion for artificial intelligence initiatives.
- CEO Elon Musk announced Cybercab manufacturing has commenced, with robotaxi service expansion scheduled for several U.S. metropolitan areas during the first half of 2026.
- The company indicated significant robotaxi revenue won’t materialize before 2027.
Tesla experienced a challenging trading week. Shares dropped 3.6% on Thursday following the company’s first quarter 2026 financial report, and by Friday’s open, the stock had declined 6.1% for the week.
A single positive development emerged Friday morning when DZ Bank raised its rating from Sell to Hold, establishing a $385 price target. While this represents modest optimism, the impact remained limited — the consensus analyst price target for Tesla currently stands at $406, representing a roughly $7 decline since the earnings announcement.
Although the company surpassed earnings forecasts, investors responded negatively. Tesla increased its annual capital expenditure projection to $25 billion, up from its earlier $20 billion estimate. These funds will support AI infrastructure development, encompassing self-driving technology and humanoid robotics — two areas not yet producing substantial revenue.
Tesla’s stock traded near $376 in early Friday trading, showing a modest gain of less than 1%.
Manufacturing of Cybercab Commences
Perhaps the week’s most significant announcement came directly from Elon Musk. He revealed on X that Tesla has begun manufacturing the Cybercab, its highly-anticipated autonomous taxi vehicle.
The Cybercab features a compact two-passenger, two-door electric vehicle design without a steering wheel or pedals. This configuration requires regulatory approval before widespread deployment across the United States, which Tesla hasn’t obtained yet.
The company has been systematically expanding its robotaxi service footprint. Following the Austin launch last year, the service debuted in Dallas and Houston this month. Additional expansion to Phoenix, Miami, Orlando, Tampa, and Las Vegas is planned for the first six months of 2026.
Despite this production milestone, Tesla stock showed minimal reaction. Shares gained less than 1% during premarket hours before stabilizing into Friday’s trading session.
First Quarter 2026 Financial Performance
Tesla posted Q1 2026 revenue totaling $22.39 billion. The company recorded net income attributable to common shareholders of $477 million. Adjusted earnings per share reached $0.41, while free cash flow totaled $1.44 billion.
The company delivered 358,023 vehicles during the three-month period. Capital expenditures for the quarter alone reached $2.49 billion.
Nationwide all-electric vehicle sales declined 27% year-over-year in the first quarter, following the September 2025 expiration of the federal $7,500 EV tax incentive.
Tesla’s shares have declined during 11 of the previous 13 weeks, shedding approximately 16% throughout that timeframe. Year-to-date losses stand at roughly 17%.
Analyst sentiment remains divided. Just 44% of analysts tracking Tesla assign it a Buy rating, falling short of the S&P 500’s typical 55-60% average. Meanwhile, 13% rate it a Sell, nearly twice the index’s approximately 7% average.
Musk has stated the Cybercab will carry a lower price tag than current Tesla offerings. Official pricing details have not been released.
