Shares in Tesla (TSLA) stock took a 2% tumble on Monday after the company hit another regulatory hurdle in China related to its vehicles. Indeed, new draft rules from the Chinese Ministry of Industry and Information Technology say that all door handles must now come with a mechanical emergency release. This means that models of Tesla’s vehicles in China must shift from their retractable door handles come early 2027, or risk a ban from being sold.
Outside of the US, Tesla sales have largely struggled in 2025. EU sales have fallen quarter after quarter, and the latest update out of China doesn’t help its hopes overseas. Despite that, overall Tesla shares have been solid, leading TSLA stock to an overall 21% climb year-to-date.
Tesla Stock Still Up YTD, How Will TSLA Fare in 2026?
Despite the brief dip on Monday, Tesla (TSLA) stock is still trading at solid levels to close out 2025, up at $459 at press time. TSLA is trading near the top of its 52-week range and above its 200-day simple moving average. Additionally, recent forecast updates on Wall Street have the stock roaring higher in 2026, with many bullish predictions online. Analysts are betting that Tesla will intensify testing of the Robotaxi and rapidly deploy driverless taxis as it prepares to launch its Cybercab model next 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. The company’s success can similarly translate in 2026 should the cybercab program launch nationwide next year successfully.
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Alternatively, other Wall Street analysts have been mixed on the EV giant as of late, with several forecasts being cut for the stock. Earlier this month, Andrew Percoco of Morgan Stanley downgraded Tesla to Equal-weight from Overweight, reversing the firm’s previously bullish position on the stock.