Tesla Inc. (NASDAQ: TSLA) shares declined 3.2% on Monday, February 23, 2026, closing at $348.12 after trading in a range of $345.80 to $357.45. The drop came as investors digested the company’s fourth-quarter 2025 delivery figures released earlier in February and weighed ongoing uncertainty around production ramps, competition in electric vehicles, and CEO Elon Musk’s shifting priorities toward artificial intelligence and humanoid robotics.

Tesla’s market capitalization stood at approximately $1.11 trillion at Monday’s close, down from peaks above $1.3 trillion in late 2025. The stock has gained roughly 4% year-to-date in 2026 but remains volatile, trading about 28% below its all-time high of $488.54 (split-adjusted) set in December 2024. Average daily volume has hovered around 85-90 million shares in recent sessions, reflecting continued retail and institutional interest despite a cooling in the meme-stock fervor of prior years.

The latest catalyst was Tesla’s Q4 2025 production and delivery report, issued February 2, 2026. The company produced 495,570 vehicles and delivered 484,507 — both figures below Wall Street consensus estimates of approximately 510,000-515,000 deliveries. Full-year 2025 deliveries totaled 1.81 million vehicles, marking the first annual decline since 2011 and falling short of Musk’s earlier goal of 20-30% growth. The shortfall was attributed to factory retooling for refreshed Model Y production, softer demand in Europe and China, and intensified competition from BYD, Rivian, and legacy automakers.

Despite the miss, Tesla maintained strong profitability metrics. Adjusted operating income reached $3.2 billion in Q4, with automotive gross margins holding above 18% excluding regulatory credits. Energy storage deployments surged 157% year-over-year to 11.0 GWh, underscoring growth in the Megapack and Powerwall businesses. Free cash flow remained positive at $2.1 billion for the quarter, supported by a cash position exceeding $33 billion.

Musk used the earnings call to pivot attention toward future growth drivers beyond EVs. He reiterated that Optimus, Tesla’s humanoid robot, represents “the biggest product opportunity in history” and projected millions of units annually within five years. The company showcased Optimus performing household tasks at the “We, Robot” event in October 2025 and confirmed limited production for internal use in 2026, with external sales targeted for 2027. Musk also highlighted progress on Full Self-Driving (FSD) software, with version 13.2 rolling out to more users and unsupervised driving demos in Texas and California.

Analyst reactions were mixed. Morgan Stanley maintained an Overweight rating with a $430 price target, citing robotics and AI as transformative long-term catalysts. Wedbush kept an Outperform at $515, emphasizing energy storage and autonomy upside. However, GLJ Research reiterated a Sell rating with a $23 target, arguing that current valuation assumes flawless execution on unproven initiatives while core EV growth slows. Consensus price target sits around $385-390, implying 10-12% upside from current levels, with ratings split roughly 60% Buy, 30% Hold, and 10% Sell.

The stock’s recent weakness aligns with broader EV sector pressures. Global electric vehicle sales growth has moderated in 2025-2026, with incentives phasing out in some markets and charging infrastructure still lagging in others. Tesla faces heightened competition in China, where BYD overtook it as the world’s largest EV seller by volume in 2025. Price cuts implemented in late 2025 and early 2026 helped stabilize demand but compressed margins.

Tesla’s energy business continues to shine as a bright spot. Megapack deployments are scaling rapidly, with new factories in Shanghai and Texas coming online. The segment posted record profitability in Q4, with gross margins exceeding 30%. Analysts project energy storage could contribute 15-20% of total revenue by 2027-2028 if current trends hold.

Regulatory and legal headwinds persist. The National Highway Traffic Safety Administration continues investigating FSD-related crashes, while multiple class-action lawsuits allege misleading statements about autonomy timelines. Musk’s political involvement, including his role in the Department of Government Efficiency (DOGE) under President Trump, has sparked debate about potential conflicts of interest and regulatory favoritism.

Looking ahead, Tesla’s next major update is the Q1 2026 production and delivery report expected in early April. Wall Street anticipates around 420,000-440,000 deliveries for the quarter, reflecting seasonal softness and ongoing Model Y refresh impacts. The earnings call, scheduled for late April, will provide further color on Optimus timelines, Robotaxi progress, and energy growth.

For now, Tesla stock trades at a forward P/E of approximately 80-90x consensus 2026 EPS estimates of $3.80-$4.00, well above traditional automakers but justified by bulls as a bet on AI, robotics, and energy rather than pure EV sales. Bears argue the multiple leaves little room for error if autonomy or humanoid timelines slip.

As February 2026 draws to a close, Tesla remains a high-conviction, high-volatility name. Its trajectory hinges on execution across multiple moonshot bets — from FSD and Robotaxi to Optimus and energy storage — while navigating a maturing EV market and macroeconomic crosscurrents.

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DUBAI, United Arab Emirates — Daniil Medvedev wasted little time asserting dominance in the Dubai Duty Free Tennis Championships, dispatching China’s Shang Juncheng 6-1, 6-3 in straight sets Tuesday to advance to the second round of the ATP 500 event on outdoor hard courts.

The third-seeded Russian, ranked No. 11 in the world, needed just 1 hour and 6 minutes to close out the match on Centre Court at the Dubai Tennis Stadium. Medvedev fired 20 winners, including 10 aces, while winning 81% of his first-serve points and committing no double faults. Shang, ranked No. 262 and playing as a protected ranking entrant, struggled to find rhythm, managing only five winners against Medvedev’s relentless baseline pressure and precise serving.

The victory marked Medvedev’s second straight win over Shang in as many weeks. The pair met in the first round of the Qatar ExxonMobil Open in Doha on February 16, where Medvedev prevailed 6-4, 6-2. Medvedev’s flawless execution in Dubai — particularly his serve and return game — left Shang with few opportunities to mount a challenge.

Medvedev broke Shang’s serve four times across the two sets, converting on 57% of break points. Shang held serve just once in the first set and twice in the second, unable to counter Medvedev’s deep returns and aggressive court positioning. The Russian dictated play from the baseline, forcing errors and keeping rallies short when advantageous.

The match highlighted Medvedev’s strong start to 2026. After a solid Australian Open campaign and consistent results in the Middle East swing, he enters Dubai with momentum. The former world No. 1 and 2021 US Open champion won the Dubai title in 2023 and has a 4-1 record in first-round matches at the event, with no early exits since 2019.

Shang, a 21-year-old rising talent from China, showed flashes of potential with his quick footwork and flat groundstrokes but lacked the consistency to trouble Medvedev. The young player has climbed rankings steadily but faced a steep challenge against one of the tour’s most tactically astute competitors.

Medvedev next faces Swiss veteran Stan Wawrinka in the round of 16, setting up an intriguing clash between the 30-year-old Russian and the 40-year-old three-time Grand Slam champion. Wawrinka, a wildcard entrant, advanced earlier Tuesday with a win over another opponent.

The Dubai Duty Free Tennis Championships, featuring a strong field including top seeds and former champions, continues through March 1 with a $3,311,005 purse on hard courts. Medvedev’s efficient win keeps him on course for a deep run as he seeks to add to his Dubai legacy.

Fans can catch highlights on ATP Tour platforms and TennisTV, with live coverage available worldwide. Medvedev’s performance underscores his status as a consistent threat on hard courts, particularly in the early rounds of tournaments where his defensive prowess and counterpunching shine.

As the tournament progresses, Medvedev’s path could include potential quarterfinal or semifinal matchups against other seeded players. His ability to maintain focus and execute under pressure will be key in the competitive Dubai draw.