TradingKey - Tesla (TSLA) began August 24 with solid momentum from Nevada’s approval of robotaxi operation the previous day, but prepared for fallout in China. On August 20, the Nevada Transportation Authority approved Tesla Robotaxi LLC to run a commercial autonomous vehicle network in Clark County, allowing up to 5,000 vehicles over a period of 12 months, a huge jump from the previous interim cap of 10 vehicles. On August 17, Reuters noted that Tesla was possibly preparing for employee testing of Cybercab in Austin. 

However, on August 21, China announced an almost 2.98 million recall of Tesla vehicles (Model 3, Model Y, Model S, and Model X), with concerns of the emergency door release, as the largest recall in the history of the Chinese market. Q2 FY2026 brought in record 480,126 vehicle deliveries and revenue of $28.236B, a rise of 26% year on year. Shanghai’s production increased by 37.8% over the same period. 

Energy revenue for the same period increased by 13% with a sharp decline in margins from 30.3% to 20.4%. At $25 billion, Tesla has set an unprecedented budget for 2026 to shift from a vehicle company to AI and robotics, alongside the autonomous transportation industry.

Nevada Robotaxi Approval: Commercial Service Cleared for Full Clark County

Aug 20: The Nevada Transportation Authority has unanimously approved Tesla Robotaxi LLC to deploy up to 5,000 autonomous vehicles across Clark County. This approval replaces the previous July 27th interim cap of 10 vehicles deployable exclusively to the Las Vegas Strip. Eric Early, Tesla Cybercab's Chief Engineer, stated that the first year deployment goal is to get roughly 2,500 vehicles on the road, signaling that 5,000 would be the upper limit. This approval brings further validation to theRobotaxi story.

Although there is still a timeline of roughly 30 days for vehicle inspections, insurance filings, and fare disclosures before launch, Waymo and Aviari Services LLC — an Uber autonomous vehicle subsidiary — were each approved for 1,000 vehicles.

China Recall: 2.98M Vehicles, Aug 21; Software Fixes, New Regulatory Risk

Aug 21: Tesla's recall of certain vehicles sold in China (Model 3, Model Y, Model S, and Model X) is now estimated at over 2.98 million units, covering the emergency door-release systems. Post-crash or post-power-system-failure events, the door release systems in Tesla vehicles are too difficult to locate under the circumstances, according to the Chinese regulatory authorities. Tesla anticipates addressing most of the issues with a software update and better design of the warning labels.

Conversely, physical replacement of the components may entail a higher cost. The major regulatory risk is amplified because of China's significant importance as both a major market and manufacturing hub. Regulators intend to impose more stringent regulations on electronic door handles from 2027. This recall is being issued at a critical time of intense regulatory focus.

Q2 FY2026: Record Deliveries, Revenue Growth, but Automotive Margins Weak

Revenue was reported as $28.236B in Q2 (+26% YoY), while the previous year was $22.496B. Automotive revenue was $20.516B (+23%), while Services/other was $4.581B and energy generation/storage was $3.139B (+13%). This was the first time in company history Tesla reported 480,126 vehicle deliveries (approximately 406K expected). Wholesale deliveries for Shanghai were reported as 93,579 units, reflecting a 37.8% YoY increase and 5% sequentially. GAAP gross profit was recorded as $4.75B at 16.8% (compared to 17.2%). Automotive gross margin was reported as 16.9%, and GAAP net income was $1.11B, compared to $1.17B YoY. Energy gross margin was adversely impacted due a combination of sales mix, warranty dynamics, and cost competition to the tune of 20.4% compared to 30.3% YoY.

Cybercab Ramps Toward Commercial; Capex Accelerating at >$25B FY2026

According to reports, Cybercab, Tesla's purpose-built fully autonomous ground vehicle, is being tested with Tesla employees at the end of August in Austin. Cybercab is fundamentally unlike any other robotaxis, as it has no steering wheel or pedals. The long term economics of this vehicle and Tesla’s current plans for robotaxis depend on this transition. 

Capex for FY2026 will cross $25B for AI compute, data centers, manufacturing, research & development, and a robotaxis and charging/service infrastructure. Year to date (YTD) capex (H1 2026) has been approximately $8.28B, an over 2x increase from 2025. Cash position for June 2026 was $43.5B. Balance sheet is healthy for Cybercab, Robotaxi, Optimus, and AI investment.

Shanghai Strong, but Exports Dominate; Europe Uneven, Energy Softer

Sales of wholesale vehicles in Shanghai in the month of July was 93,579 (up 5% from the previous month and 37.8% from last year). Ninth straight month of YoY growth. Strength increasingly stems from exports. BYD’s dominance and competition amongst other EVs in China is visible. France is an exeception with over 86% growth in sales YoY, however other countries are showing decreased numbers. Revenues from Energy increased 13%, but margins decreased from 30.3%% to 20.4% from increased competition and sales.

Technical: Support $355, Resistance $369, Recovery from Late-July Low

TSLA is trading at $362.78 after a strong technical recovery from its late-July low of around $297.57. The stock’s bullish momentum continues to grow as the RSI is at around 68 and is above its signal line of 60, approaching the overbought zone of 70. TSLA is currently testing immediate resistance in the range of $368.57 - $368.83 which contains a 61.8% Fibonacci retracement level and a descending trendline. 

Tesla Price Forecast Chart - Source: Tradingview

A bullish break above the $369 level could expose resistance levels of $380.16, $390.61, and the broader resistance zone between $400 and $413. On the downside, immediate support is in the range of $355.18 – $358.51, with lower support levels come near the moving average at $344.08 and Fibonacci support at $341.53.

Bottom Line: Regulatory Victory Shadowed by China Risk, Capex Intensity Remains

TSLA Bull Call Spread Aug 24: Nevada robotaxi approval (5,000 vehicle permit, full Clark County) bullish. Cybercab employee testing (Aug 17) signals the next phase. China recall of 2.98M vehicles (Aug 21) adds a regulatory risk. Q2 revenue of $28.236B (+26%), 480,126 deliveries. Shanghai +37.8% YoY (mostly exports). Energy +13%, margin fell 30.3%-20.4%. Capex >$25B FY26.

For investors: Tesla's fundamental investment case involves more than just selling cars. The focus is shifting to the “robotaxi” economics. Regulatory approvals, like those in Nevada, validate the efforts made by the company and the launch of the Cybercabs is the next big destimator. The stock faces serious threats of execution and safety.

Success will depend on whether the company can profit from its investments in robotaxis and its Cybercabs, Autonomous trucks, and Optimus. The focus of the technical analysis is on the risk of profit-taking of the stock around the $369 level. This research note does not represent a recommendation to buy or sell the securities.

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