Tesla Stock Daily Drive

October 10, 2025 • Finance

Hosted by Dusty

About This Episode

Generated finance podcast with host Dusty based on prompt: Daily stock movements for Tesla. Focus on the stock, but provide any important background information that is necessary.

Transcript

Welcome to "Tesla Stock Daily Drive," your go-to for understanding all things Tesla and the stock market. I'm Dusty, here to guide you through today’s news with a calm and thoughtful approach.

Today is October 9, 2025, and Tesla shares have been on a bit of a rollercoaster. They closed at $433.98, which is a 1.1% dip from the previous session. What’s driving this decline? Well, it looks like the National Highway Traffic Safety Administration is making waves with a preliminary evaluation of nearly 2.9 million Tesla vehicles equipped with Full Self-Driving technology. This scrutiny comes amid broader market jitters, with the Dow, S&P 500, and Nasdaq all pulling back slightly on mixed signals from the Federal Reserve and delays in economic data due to the ongoing government shutdown.

Now, let’s zoom out a little. Equity markets have hit pause after a record-setting rally. Investors are waiting for fresh catalysts. Federal Reserve Chair Jerome Powell didn’t provide any new insights on interest rates, which led to some modest selling, particularly in consumer discretionary stocks. Tesla, alongside Amazon, saw declines contributing to a 0.9% fall in the related sector. However, AI-related stocks like Nvidia are still shining, bucking the trend with gains.

Back to Tesla’s regulatory landscape: The NHTSA’s probe focuses on 50 or more reports involving traffic violations linked to the FSD system, such as running red lights and making unsafe maneuvers. More seriously, there’ve been 14 crashes and 23 injuries allegedly connected to this system. Depending on the investigation’s findings, this could lead to a formal recall—definitely something investors are watching closely, given FSD’s importance to Tesla’s revenue strategy.

Switching gears to product news, Tesla recently rolled out version 14 of its FSD software, highlighting major improvements in urban driving. Some testers are already behind the wheel, though broader deployment is still weeks away. Meanwhile, Tesla has also introduced cheaper versions of its Model 3 and Model Y, as a response to the expired U.S. EV tax credit. But the initial reaction from investors has been lukewarm due to concerns over thinner margins.

Looking at the big picture, Tesla reported a record-breaking third quarter with 497,099 vehicle deliveries. That’s partly thanks to a pre-tax credit buying frenzy in the U.S., though sales in Europe and China haven’t kept pace. Despite these record numbers, the stock is still not rallying as some might expect. As it stands, Tesla is up about 11% year-to-date, outperforming the S&P 500 but not quite keeping up with some tech peers.

So, what should investors watch next? The Federal Reserve’s upcoming meeting at the end of the month could bring key interest-rate decisions. There’s a strong expectation of a rate cut, which might just give the market a lift. Plus, the start of the third-quarter earnings season with major bank reports could provide insight into economic health. And, of course, any news from the NHTSA’s investigation or updates on Tesla’s product lineup—like that rumored affordable model or the next-gen Roadster—could shift the narrative for Tesla’s stock.

It’s a packed agenda with plenty of moving parts, and keeping an eye on these factors will be crucial for anyone invested in or interested in Tesla.

Thanks for tuning into "Tesla Stock Daily Drive." I'm Dusty, reminding you: when the dust settles, only the truth remains. Catch you next time.

## Tesla Stock Movement on October 9, 2025

On Thursday, October 9, Tesla Inc. (NASDAQ: TSLA) shares closed at $433.98, marking a 1.1% decline from the prior session’s close. The drop came amid heightened regulatory scrutiny, as the National Highway Traffic Safety Administration (NHTSA) announced a preliminary evaluation into nearly 2.9 million of Tesla’s Full Self-Driving (FSD)–equipped vehicles over safety concerns. Trading volume for the session was elevated, reflecting investor caution, though exact volume figures are pending release from exchange data. This underperformance contrasted with a broader market pullback, as the Dow Jones Industrial Average fell 0.20%, the S&P 500 slid 0.12%, and the Nasdaq Composite dipped 0.14% on mixed signals from the Federal Reserve and delayed economic data due to the ongoing U.S. government shutdown ([barrons.com](https://www.barrons.com/articles/tesla-stock-price-today-fsd-6ce0211a?utm_source=openai)).

## Market Context and Sector Performance

Equity markets in the U.S. paused their recent record-setting rally as investors awaited fresh catalysts. Federal Reserve Chair Jerome Powell offered no new guidance on the path of interest rates at a policy forum, dampening hopes for imminent cuts and prompting a modest sell-off across sectors. Consumer discretionary names led declines, with Tesla and Amazon both trading lower and contributing to a 0.9% fall in the S&P 500 consumer discretionary sector. In contrast, semiconductor leader Nvidia bucked the trend with a 2.7% gain, as AI-related stocks remained in favor. The delay in official economic releases—stemming from the federal shutdown—has intensified focus on corporate earnings and regulatory developments as drivers of market direction ([reuters.com](https://www.reuters.com/business/wall-st-futures-muted-investors-await-powells-take-inflation-jobs-2025-10-09/?utm_source=openai)).

## Regulatory Headwinds: FSD Investigation

The NHTSA’s new probe centers on more than 50 reports of FSD-related traffic violations and 14 crashes resulting in 23 injuries, with allegations that the system caused vehicles to run red lights and make unsafe lane changes. In incidents at railroad crossings, FSD beta software purportedly allowed cars to cross tracks improperly. The preliminary evaluation could escalate to a formal recall if safety risks are confirmed. This scrutiny follows earlier inquiries into Tesla’s Autopilot system and adds to congressional hearings on automated driving technology. Investors are closely monitoring the investigation’s scope and potential financial implications, given FSD’s importance to Tesla’s long-term AI and software revenue strategy ([reuters.com](https://www.reuters.com/business/autos-transportation/us-opens-probe-into-28-million-tesla-vehicles-over-traffic-violations-when-using-2025-10-09/?utm_source=openai)).

## Recent Product and Software Developments

Earlier in the week, Tesla activated version 14 of its FSD software for a select group of testers, touting “almost sentient” improvements in urban driving performance. CEO Elon Musk characterized v14 as a significant leap over prior releases, although wider deployment remains weeks away. Simultaneously, the company has been rolling out cost-reduced versions of its Model 3 and Model Y vehicles, with the Model Y Standard Rear-Wheel Drive now priced just under $40,000. While these moves aim to sustain demand after the U.S. EV tax credit expiration on September 30, initial investor reaction has been muted, with stock dipping on hopes for a more aggressive entry-level model and concerns over margin compression on lower-cost variants ([reuters.com](https://www.reuters.com/business/autos-transportation/tesla-teases-tuesday-event-focus-shifts-affordable-evs-2025-10-06/?utm_source=openai)).

## Q3 Deliveries, Valuation, and YTD Performance

Tesla reported a record 497,099 vehicle deliveries in Q3 2025, driven by a pre-tax-credit-expiration surge in U.S. demand, though this beat was partially offset by weakening sales in Europe and China. Despite robust delivery numbers and improving energy storage deployments, Q3 results failed to produce a sustained stock rally, with shares closing 5.1% lower on the delivery announcement. On a year-to-date basis, TSLA shares are up roughly 11%, outperforming the broader S&P 500 but lagging some of its technology peers amid valuation concerns. Analysts remain divided: some highlight Tesla’s long-term AI and robotics potential, while others caution that intensifying competition and shrinking credit revenues will weigh on margins beyond 2025 ([investors.com](https://www.investors.com/news/tesla-stock-deliveries-expiring-ev-tax-credits/?utm_source=openai)).

## Outlook and Key Upcoming Catalysts

Looking ahead, investors will track several critical developments. The Federal Reserve’s October 28–29 meeting holds key decisions on interest-rate policy, with markets pricing in a 94.6% probability of a 25-basis-point rate cut by year-end—a shift that could lift risk assets if realized. Third-quarter earnings season formally kicks off next week with major bank reports from JPMorgan Chase, Goldman Sachs, Citigroup, and Wells Fargo, serving as a barometer for consumer and corporate credit health. On the regulatory front, outcomes from the NHTSA’s FSD probe will be pivotal for Tesla’s legal and recall risk profile. Finally, any updates on Tesla’s rumored affordable model prototypes or next-generation Roadster and Cybertruck production timelines could provide fresh directional triggers for the stock ([reuters.com](https://www.reuters.com/business/wall-st-futures-muted-investors-await-powells-take-inflation-jobs-2025-10-09/)).

Tesla Stock Daily Drive