Key Takeaways
- On Friday, DZ Bank raised Tesla’s rating from Sell to Hold, setting a $385 price target.
- Tesla shares have declined 6.1% this week and are down 17% year-to-date, dropping in 11 of the last 13 weeks.
- First quarter 2026 results exceeded forecasts, but the company increased its capital expenditure outlook from $20 billion to $25 billion for AI initiatives.
- CEO Elon Musk announced Cybercab manufacturing has commenced, with robotaxi service expansion to several U.S. markets planned for the first half of 2026.
- The company indicated that significant robotaxi revenue generation is not anticipated before 2027.
Tesla has endured a challenging week in the markets. Shares dropped 3.6% on Thursday following the electric vehicle maker’s first-quarter 2026 financial results, bringing the weekly decline to 6.1% as Friday approached.
The sole positive development on Friday came from DZ Bank, which elevated its rating from Sell to Hold and established a $385 price objective. While this represents a modest improvement in sentiment, the impact appears limited — the consensus analyst price target for Tesla now stands at $406, reflecting a roughly $7 decline since the earnings announcement.
Although the company surpassed earnings projections, investors responded negatively. Tesla increased its annual capital expenditure forecast to $25 billion, up from the previously announced $20 billion estimate. These funds will support AI-related infrastructure development, particularly for autonomous driving technology and humanoid robotics — both areas that have yet to produce substantial revenue streams.
Tesla shares traded near $376 in early Friday sessions, showing a marginal gain of less than 1%.
Cybercab Manufacturing Begins
Perhaps the week’s most significant development came directly from Elon Musk. The Tesla CEO announced via X that production of the Cybercab, the company’s highly anticipated autonomous taxi, has officially begun.
The Cybercab features a two-seat, two-door electric vehicle design without a steering wheel or pedals. This unconventional configuration requires regulatory approval before widespread deployment across the United States, which Tesla has not yet obtained.
Tesla has been methodically expanding its robotaxi footprint. Following the initial launch in Austin last year, the service was introduced to Dallas and Houston earlier this month. The company intends to enter Phoenix, Miami, Orlando, Tampa, and Las Vegas markets during the first six months of 2026.
Despite this production milestone, Tesla stock showed minimal response. Shares increased less than 1% during premarket hours before stabilizing in regular Friday trading.
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 measured $1.44 billion.
The automaker delivered 358,023 vehicles during the quarter. Capital expenditures for the three-month period reached $2.49 billion.
Across the United States, all-electric vehicle sales declined 27% year-over-year in the first quarter, a trend attributed to the September expiration of the $7,500 federal EV tax credit.
Tesla’s shares have fallen in 11 of the previous 13 weeks, representing approximately a 16% decline during that timeframe. Year-to-date, the stock is down roughly 17%.
Wall Street sentiment remains divided. Just 44% of analysts covering Tesla maintain a Buy rating, trailing the S&P 500 average of 55-60%. Meanwhile, 13% assign a Sell rating, nearly twice the index average of approximately 7%.
Musk has indicated the Cybercab will carry a price point below current Tesla vehicle offerings. Official pricing details have not been disclosed.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
