/ February 4, 2026 Tesla’s stock closed Wednesday’s trading session down approximately 1.8% at a price near $414. This decline reflects investor assessment of the electric vehicle maker’s recent strategic shifts against a backdrop of intensifying competition, particularly in the autonomous ride-hailing sector that CEO Elon Musk has prioritized for future growth. Strategic Shift in Software Monetization A significant change to Tesla’s Full Self-Driving (FSD) software strategy was announced in mid-January. The company will discontinue the one-time purchase option for FSD effective February 14, 2026, transitioning the system exclusively to a monthly subscription model. This move is designed to generate more predictable, recurring revenue streams. By the end of 2025, the FSD package had been either purchased or subscribed to by 1.1 million vehicle owners. The market is also processing news from related ventures. On February 2, 2026, the merger between SpaceX and xAI was finalized, creating a combined entity valued at roughly $1.25 trillion. While Tesla is not a direct party to this consolidation, it maintains an indirect stake in the new conglomerate through an earlier investment in xAI. The long-term implications for Tesla shareholders remain uncertain.