Tesla stock wobbly today: what's fueling the price swings

Tesla stock was wobbly on Wednesday.

Tesla stock rose as much as 1.3% at $412.51 in early trading. However, the EV major gave up those gains pretty soon to trade near the flatline.

At the time of writing, shares of Tesla recovered a bit and were up around 0.8%.

The S&P 500 and Dow Jones Industrial Average were up 0.1% and 0.2%, respectively.

The uneven movement comes as CEO Elon Musk announced that production of the company’s purpose-built robo-taxi, known as the Cybercab, had begun.

The announcement signalled early progress on a vehicle that is central to Tesla’s long-term strategy in autonomous transportation and artificial intelligence.

Early production supports April timeline

Analysts said the start of production appears to support Tesla’s previously outlined schedule for the Cybercab program.

“Initial Cybercab production may be for a limited number in support of testing and validation,” Barclays analyst Dan Levy wrote in a report on Tuesday.

“Today’s announcement is supportive of the April [production] timeline.”

The Cybercab was unveiled in late 2024, and Tesla has indicated that assembly-line production is expected to begin in April.

The progress stands out given the company’s history of delays on major projects.

Tesla’s Cybertruck reached customers about four years after its initial unveiling, and some buyers are still waiting for the company’s second-generation Roadster, which was announced in 2017.

Robo-Taxi strategy and AI ambitions

The Cybercab is a key part of Tesla’s ambition to position itself as a physical artificial-intelligence company, developing AI-trained products that interact with the real world.

In June, Tesla launched an AI-trained robo-taxi service in Austin, Texas, using Model Y vehicles.

The service competes with Alphabet’s Waymo. The company plans to add Cybercabs to this network over time.

Tesla has said it intends to expand its robo-taxi operations to nine cities in the first half of 2026.

In addition to operating its own network, the company plans to sell Cybercabs to third parties interested in running independent fleets.

California regulatory clearance lifts Pressure

Another factor supporting Tesla shares was news that the company will be allowed to continue selling vehicles in California after revising its marketing practices related to driver-assistance systems.

The California Department of Motor Vehicles said late Tuesday that Tesla had taken “corrective action,” including ending the use of Autopilot branding in the state.

The company has also modified its use of the term Full Self-Driving to clarify when driver supervision is required.

California had previously been preparing to suspend Tesla’s sales license for 30 days following a December ruling by an administrative judge.

The ruling found that Tesla had exaggerated the capabilities of its driver-assistance technology.

The state had given Tesla time to appeal or comply with regulatory requirements.

Labour tensions mount in Germany

At the same time, Tesla is facing growing labour disputes in Germany, where the country’s largest union has accused the company of fostering a hostile working environment at its factory near Berlin, as per a Bloomberg report.

IG Metall said on Wednesday that Tesla was overworking employees and placing pressure on staff who had fallen ill.

According to the union, it has applied for an injunction over what it described as false allegations that one of its members recorded a works council meeting.

The union has also asked prosecutors to investigate a local Tesla manager for defamation.

Tesla’s management is attacking unions in Germany “with unprecedented aggression,” Jan Otto, a regional leader at IG Metall, told the business news publication. “The company must not be allowed to get away with this.”

The dispute comes ahead of a contested works council election at the factory next month.

IG Metall is seeking to secure a majority in order to implement wage agreements that are standard in Germany.

Musk has repeatedly expressed opposition to unions and collective bargaining.

In Germany, labour representatives typically hold half the seats on supervisory boards at major companies, giving them significant influence over corporate strategy.