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Tesla shares drop 5% amid CEO Musk's China trip and concerns over FSD, robotaxi glitches, and battery delays

Market News
12 May 2026
24/7 Wall Street
View Source
Bearish
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Tesla shares fell about 5% as CEO Elon Musk heads to China amid uncertainty over Full Self-Driving (FSD) approval, robotaxi service issues, and Panasonic battery production delays. These factors create pressure on Tesla's stock after a recent 28% rally, with investors cautious about near-term catalysts. The China market is crucial for Tesla's advanced driver assistance technology, and FSD approval there could be a major boost. Meanwhile, operational challenges with robotaxi services and battery supply constraints threaten production targets for new Tesla models in 2026. Investors are advised to watch for developments on FSD approval and robotaxi performance before making new commitments.

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