Tesla, Inc. (TSLA -5.92%) shares fell 6% on Friday, Sept. 4, 2026, after its Cybercab launch event failed to impress investors and federal regulators opened a safety audit.
The S&P 500 and the Nasdaq Composite both dropped, losing 0.4% and 0.3%, respectively.
NASDAQ: TSLA
Key Data Points
Tesla's Cybercab event left pricing and production questions unanswered before NHTSA opened a safety audit
On Thursday, Tesla held its much-anticipated Cybercab launch event. However, the event left investors wanting more. CEO Elon Musk wasn't there, and attendance was limited to just a small group of shareholders and content creators under nondisclosure agreements. Tesla usually likes to livestream its events. It did not stream this one.
Even more concerning to many investors, the company offered no real tangible details and, as RBC Capital Markets put it, left "key outstanding questions around pricing, production cadence, and regulatory approvals" unanswered.
Image source: Getty Images.
That last one is a present concern: on Friday, the National Highway Traffic Safety Administration (NHTSA) said it had opened an audit query into how Tesla self-certified the Cybercab and why it decided normal safety standards don't apply to the vehicle, like those that require a steering wheel, pedals, and mirrors.
Tesla trades at a P/E above 320, pricing in unproven businesses
Tesla's stock trades at a price-to-earnings ratio of more than 320 -- an extreme figure. That valuation rests mostly on new technologies and business lines that are still in development and are far from slam-dunks. Timelines constantly get pushed, and promised futures never quite arrive. I would avoid the stock.
