Al Root
Geopolitics trumped autonomous driving news early Monday, leaving Tesla stock mired in its continuing slump.
Shares of the electric vehicle maker fell 0.9% in early trading to $345.81, while S&P 500 and Dow Jones Industrial Average futures were down 0.6% and 0.5%, respectively.
The moves came after President Donald Trump said the U.S. Navy would blockade the Strait of Hormuz after peace talks with Iran failed to yield a satisfactory deal over the weekend. The Strait is a key shipping lane for oil. Benchmark international crude prices were up 7%, north of $102 per barrel, in early trading.
The dip for Tesla stock also came after the Netherlands approved Tesla's Full Self-Driving driver-assistance feature. It's the first European approval for the software, which is capable of doing most of the driving for Tesla owners.
"We view this as material, since it marks the first country in Europe to grant regulatory approval of Tesla's FSD, or to allow autonomous vehicles on European roads," wrote Cantor Fitzgerald analyst Andres Sheppard in a Monday report, adding that Tesla expects to add more European countries "soon."
He rates shares Buy and has a $510 price target for the stock.
Self-driving technology is key for Tesla stock. It accounts for a majority of the company's $1.5 trillion valuation in many Wall Street financial models. Tesla launched an AI-trained robo-taxi service in Austin, Texas, in June, and investors expect Tesla to add cities soon.
Investors will hear more about FSD plans in Europe and robo-taxis when Tesla reports first-quarter earnings on Apr. 22 after the market close.
Coming into Monday trading, Tesla stock was down 22% year to date. Shares have dropped for eight consecutive weeks, losing about 17% over the span. Shares started to slide after the company reported fourth-quarter earnings in January, with higher capital spending and falling 2026 earnings estimates weighing on investor sentiment.
Write to Al Root at allen.root@dowjones.com
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(END) Dow Jones Newswires
April 13, 2026 06:59 ET (10:59 GMT)
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