Tesla Navigates a Trio of Challenges as Investor Sentiment Cools

Tesla shares face mounting pressure from three distinct fronts, casting a shadow over the company’s ambitious growth narrative. Recent developments concerning its autonomous taxi service, Cybertruck pricing, and a significant legal ruling present a complex picture for investors as February draws to a close.

Legal Setback: $243 Million Autopilot Judgment Upheld

In a substantial legal blow, a federal judge rejected Tesla’s motion to overturn a $243 million jury verdict on February 20. The case, as reported by Reuters, stems from a fatal 2019 Autopilot crash. Judge Beth Bloom stated the evidence supported the verdict “more than amply.”

This landmark federal jury decision found Tesla 33% liable. Damages were awarded at $19.5 million to the estate of a 22-year-old woman, $23.1 million to her injured boyfriend, and $200 million in punitive damages. Separately, in California, Tesla avoided a 30-day suspension of certain licenses after agreeing to cease using the term “Autopilot” for marketing within the state. The California DMV had previously accused the company in 2022 of misleading consumers with its “Autopilot” and “Full Self-Driving” designations.

Robotaxi Expansion Plans Clouded by Safety Data

Fresh safety reports are complicating Tesla’s autonomous vehicle ambitions. Data from the U.S. National Highway Traffic Safety Administration (NHTSA), cited by Bloomberg, indicates five additional accidents involving Tesla’s robotaxi fleet in Austin. These incidents, occurring in December 2025 and January 2026, bring the total to 14 since the service launched in June 2025.

The recent events, all involving Model Y vehicles with the autonomous system engaged, included collisions with a stationary object and a bus, contact with a heavy truck at low speed, and two accidents while reversing. No injuries were reported in these five latest events, though two earlier 2025 incidents resulted in minor injuries.

Should investors sell immediately? Or is it worth buying Tesla?

The timing is critical, as Tesla aims to expand the robotaxi service to seven additional U.S. cities in the first half of 2026, according to CBS News citing Wedbush analyst Dan Ives. Analysis by Electrek contextualized the data, noting an incident rate of approximately one per 57,000 miles across roughly 800,000 paid miles. This rate is higher than Tesla’s own comparison data for human drivers, which indicated a minor collision about every 229,000 miles.

Cybertruck Price Cuts Signal Demand Concerns

Simultaneously, Tesla has implemented a dual pricing strategy for its Cybertruck, widely interpreted as a move to stimulate demand. On February 19, the company reduced the price of its top-tier “Cyberbeast” model from $114,990 to $99,990, as noted by Investing.com referencing Tesla’s website.

Furthermore, Tesla Oracle reported on February 22 the introduction of a new base “Cybertruck AWD Standard” variant priced at $59,990, making it the most affordable Cybertruck with dual-motor all-wheel drive. This pricing action follows reports of persistent sales challenges. Since its late 2023 launch, approximately 60,000 units have been sold—a figure far below CEO Elon Musk’s stated annual target of 250,000. Sales in 2025 are reported to have nearly halved, hampered by recalls, quality concerns, and increasing competition from rivals like Ford and Chevrolet.

Market Reaction and Forward Outlook

Closing the week at €349.55, Tesla’s equity has declined roughly 8% over the past 30 days, reflecting market apprehension. The coming weeks are poised to be decisive on two key fronts: whether Tesla can assuage safety concerns surrounding its robotaxi platform ahead of the planned geographic expansion, and if the Cybertruck’s new pricing strategy can stabilize sales without further eroding margin expectations.