Shares in Tesla (TSLA) saw a slight uptick on Friday after the EV giant was granted more time in its US investigation into its self-driving technology. Indeed, regulators have granted a five-week extension for Tesla (TSLA) to respond to allegations that its vehicles have broken traffic laws while operating in what the electric automaker calls “full self-driving” mode. Shares rose a fraction of a percent on Friday, eating into a 1.08% dip over the course of last week.
An investigation of Tesla’s full self-driving feature was opened in October 2025. The National Highway and Traffic Safety Administration said it had collected dozens of reports of cars running red lights or driving on the wrong side of the road. Per the report, the cars were occasionally observed weaving and crashing into other vehicles, causing injuries. Tesla’s auto-driving technology has been a hot topic for years, not just between regulators, but TSLA investors alike. When the latest investigation was first opened, TSLA stock took a dip in price.
In a letter to Tesla, the NHTSA said the company now has until February 23 to answer the government’s request for information. The original deadline was January 19, 2025. At press time, TSLA is trading near the top of its 52-week range and above its 200-day simple moving average.
Furthermore, Wall Street analysts are betting that Tesla will intensify testing of the Robotaxi and rapidly deploy driverless taxis as it prepares to launch its Cybercab model this year. “The news that Tesla is testing robotaxis without the safety monitors is in line with our expectations that the company is making progress in its testing, in line with management’s statements during the third quarter earnings call,” said Seth Goldstein, senior equity analyst at Morningstar. Many analysts suggest that Tesla’s work in robotaxis could provide a new, stronger revenue than its EV sales, which have declined in the past two years.
At the present time, analysts have a Hold consensus rating on Tesla (TSLA) stock based on 13 Buys, nine Holds, and eight Sells assigned in the past three months. After a 6% rally in its share price over the past year, the average TSLA price target of $393.89 per share implies 8% downside risk.