Tesla (TSLA) Stock Slides as Company Prioritizes Optimus Robot Production

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TSLA shares declined approximately 1% to $403.56 during premarket hours on Monday
The company shut down Model S and Model X assembly lines at Fremont to facilitate Optimus robot production
Second quarter deliveries reached 480,100 vehicles, surpassing analyst expectations of 406,000
Jefferies upgraded its price target from $375 to $400, keeping a Hold rating
Market participants await the July 22 earnings announcement for Optimus manufacturing details

Shares of Tesla experienced a modest decline of approximately 1% to $403.56 during Monday’s premarket session, extending the company’s challenging 2026 performance with a year-to-date loss of around 9%, though the stock remains up roughly 30% over the trailing twelve months.

Tesla, Inc., TSLA

The stock’s weakness follows investor anticipation for tangible developments in Tesla’s artificial intelligence initiatives, particularly its Optimus humanoid robot project and autonomous taxi service expansion.

Last Friday, Tesla released footage documenting the complete dismantling of Model S and Model X assembly operations at its Fremont, California manufacturing facility. The shutdown process was executed in less than seven weeks, with the reclaimed factory floor designated for Optimus robot assembly.

Optimus V3’s hand is getting scary good.

Hands are one of robotics’ nastiest little problems. Gripping is easy.

Knowing how hard to squeeze an egg, turn a tiny screw, fold fabric, or pick up something fragile without launching it across the room?

Different game.

Tesla… https://t.co/uKe3ptfBXL pic.twitter.com/1QlZT4Cw1G

— Mario Nawfal (@MarioNawfal) July 10, 2026

The automaker originally revealed its intention to discontinue Model S and X manufacturing in January, with CEO Elon Musk characterizing the robotics venture as a multi-trillion-dollar market opportunity. This strategic pivot demonstrates the company’s significant commitment to positioning Optimus as a future cornerstone revenue source.

Despite intensive preparation efforts, Tesla has yet to launch commercial sales of Optimus. Meanwhile, competing humanoid robotics manufacturers, such as China’s Unitree, continue releasing frequent development updates, intensifying expectations for Tesla to demonstrate meaningful advancement.

Second Quarter Vehicle Deliveries Exceed Forecasts

Tesla reported 480,100 vehicle deliveries for Q2 2026, significantly exceeding the Bloomberg analyst consensus of approximately 380,700 units and JPMorgan’s projection of 420,000. This figure represents a 25% increase compared to the prior year period.

The Model 3 and Model Y lineup contributed 467,800 deliveries. The “Others” segment—encompassing Cybertruck and additional models—recorded 12,364 units delivered.

Following the delivery announcement, Jefferies increased its TSLA price target from $375 to $400 while maintaining its Hold recommendation. The investment firm elevated its Q2 EBIT forecast to $1.45 billion, representing a 5.1% margin, and increased forward-year EBIT projections by approximately 6%.

Jefferies additionally raised its automotive revenue projection for the quarter to $21 billion, incorporating $250 million in regulatory credits and $500 million from vehicle leasing operations. Total company revenue is anticipated at $28.7 billion.

For fiscal year 2026, Jefferies increased its EBIT forecast by 4% to $6.2 billion. The firm maintained its free cash flow deficit estimate at roughly $7.5 billion, accounting for capital investments near $23 billion.

Upcoming Catalyst: July 22 Financial Results

JPMorgan retained a Neutral stance with a $475 price objective following the delivery figures. RBC Capital adopted a more optimistic view, raising its target to $500 while incorporating a hypothetical SpaceX acquisition scenario.

Morgan Stanley preserved its Equalweight rating alongside a $415 price target, highlighting Tesla’s recent autonomous taxi deployment in Miami as a noteworthy development.

Tesla’s autonomous ride-hailing service, initially introduced in Austin during June 2025, continues operating in select metropolitan areas and trails significantly behind Alphabet’s Waymo in operational scope.

Attention now shifts to Tesla’s Q2 financial report scheduled for July 22, where market participants anticipate guidance regarding Optimus production schedules and the robot’s latest design iteration.

Seven Wall Street analysts have already increased their earnings projections ahead of the quarterly announcement, according to data from InvestingPro.

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