Tesla Shares Drop 5% Amid China Robotaxi Concerns

Tesla shares dropped roughly 5 percent during intraday trading Tuesday, falling to around $423 after closing at $445 the previous day. The decline ended a strong rally that saw the stock climb 28 percent over the past month and nearly 10 percent in the prior week, amid converging concerns over executive travel, autonomous vehicle operations, and supply chain issues.

The pullback followed solid first-quarter 2026 results released on April 22, when Tesla reported non-GAAP earnings per share of $0.41, surpassing estimates of $0.36 to $0.39. Revenue reached $22.39 billion, up 16 percent from the year-earlier period, with automotive gross margins at 21 percent and Full Self-Driving subscriptions growing to 1.28 million, a 51 percent increase. The company also ended production of its legacy Model S and Model X vehicles, a symbolic shift with limited immediate financial impact.

Several factors contributed to the downturn. Tesla Chief Executive Elon Musk is set to join a business delegation to China, where approval for the company's Full Self-Driving software remains pending. China accounts for over 20 percent of Tesla's annual revenue and represents a key market for advanced...