Tesla Inc. (NASDAQ: TSLA) shares fell approximately 4% on January 20, 2026, closing at $419.25, in one of the stock's sharpest single-day declines of the month. The selloff was driven by a combination of investor concerns over slow initial production of the company's next-generation products and a highly public dispute involving CEO Elon Musk.
Production hurdles for the Cybercab robotaxi and Optimus humanoid robot were a primary concern. Musk described the early production stages for both projects as "agonizingly slow," emphasizing that the novel technologies require careful testing and scaling. The Cybercab, a fully autonomous vehicle without a steering wheel, is slated for volume production in 2026, while Optimus could begin limited production by the end of 2026. Analysts noted that early outputs are expected to be "extremely limited," signaling a gradual ramp-up.
Regulatory approvals pose a significant risk to Tesla's 2026 volume-production targets for the Cybercab. The vehicle may require special exemptions from federal motor vehicle safety standards and state permits for fully driverless operation, introducing uncertainty into the deployment timeline.
Concurrently, a public feud between Musk and Ryanair CEO Michael O'Leary rattled investors. The dispute began over the cost of Starlink satellite internet for airlines and escalated when Musk floated the idea of buying Ryanair, even posting a social media poll about the acquisition. This sparked fears of potential distraction from Tesla's core operations and the possibility of Musk selling Tesla shares to fund such a large acquisition, echoing pressure from his 2022 purchase of X (formerly Twitter).
Technically, the stock broke down from a multi-week consolidation, with the $415–$420 area acting as immediate support. A break below could expose the $400 level. Despite a mild pre-market rebound on January 21, sentiment remains fragile as Tesla shares are already down 7–9% year-to-date. The market's focus now shifts to key operational milestones, including the scheduled start of Cybercab volume production in April 2026 at the Texas Gigafactory.
