Why Tesla inventory is tanking round 4% on Tuesday – Invezz | USAEMALL.com

Tesla stock declined sharply at the start of the holiday-shortened trading week, as broader market weakness weighed on technology stocks.

Investors also assessed fresh comments from Chief Executive Officer Elon Musk on the company’s autonomous and robotics ambitions.

Tesla’s stock was down about 4% in early trading at $401.58 on Tuesday, following the Presidents’ Day market closure on Monday.

The S&P 500 fell 0.6%, while the Nasdaq Composite slipped more than 1%, highlighting continued pressure on growth and technology shares.

Market weakness weighs on Tesla

The decline followed a modest rebound last week, when Tesla shares rose 1.5% after two consecutive weeks of declines of more than 4%.

Despite the brief recovery, the stock has remained sensitive to broader market movements.

The Nasdaq Composite was down about 3% for the year heading into Tuesday’s session, reflecting ongoing concerns around valuations, artificial intelligence-related disruptions, and shifting expectations for interest rates.

Against that backdrop, Tesla’s recent volatility has been driven more by overall market sentiment than by company-specific developments.

Musk outlines Cybercab and Optimus timeline

Over the long weekend, Musk used the social media platform X to comment on Tesla’s upcoming autonomous vehicle and robotics projects.

On Monday, he reiterated that the Cybercab — a two-seater autonomous vehicle — is scheduled to begin production in April and will be built without pedals or a steering wheel.

The update reinforced Tesla’s push toward fully driverless transportation.

Separately, Musk wrote on Saturday that the Optimus humanoid robot would “begin to transform things in 2027, be obvious in 2028 and have a massive impact by 2029.”

The comments underscored that large-scale commercial returns from robotics remain several years away.

Musk also claimed in a separate post that Jeffrey Epstein had begun a Tesla stock short “campaign” after Musk blocked emails.

Production shifts toward robotics

Tesla is also adjusting its manufacturing priorities as it accelerates investment in automation and robotics.

The company is shelving production of the Model S and Model X at its Fremont factory and plans to convert those lines for Optimus robot manufacturing.

In a post from late 2025, Musk had suggested that while the latest Optimus model would be unveiled in early 2026, significant development work would continue throughout the year, particularly on improving the robot’s hands.

As we shift to an autonomous future, Model S & X production will wind down next quarter.

If you’d like to own one of them, now’s a good time to place your order.

Tesla wouldn’t be what it is today without Model S & X and their (early) owners – thank you for your support over

With Model S and Model X production winding down, Tesla faces a potential gap in its product portfolio.

The Model 3 and Model Y serve the compact sedan and SUV segments, respectively.

The Model S has been Tesla’s flagship large sedan and its fastest vehicle, while the Model X has been its most premium and only truly large family SUV.

As these models are phased out, Tesla’s lineup will be concentrated around its mass-market vehicles and future autonomous offerings.

Unless new models are introduced, the reduced range could limit appeal in certain customer segments.