Should investors sell immediately? Or is it worth buying Tesla? This climate of uncertainty is reflected in the stock’s performance. Shares are currently trading at 351.30 euros, representing a slight daily decline of 0.61 percent. Since the start of the year, the equity has retreated by approximately 6 percent. Institutional Investors Retreat as Legal Issues Mount The current situation has triggered a notable divergence in investor behavior. Data from JPMorgan indicates retail investors poured over $300 million into Tesla in mid-February alone. Meanwhile, major institutional players are executing a large-scale exit. UBS Asset Management slashed its position by about 74 percent, with Nomura and Goldman Sachs also offloading millions of shares. Compounding these challenges are ongoing legal conflicts. Tesla is engaged in a lawsuit against the California Department of Motor Vehicles over allegations of false advertising related to its “Full Self-Driving” terminology. Simultaneously, the robotaxi pilot project in Austin reported five new accidents in December and January, bringing the total number of incidents since the fleet’s launch to 14. A Ticking Clock for “CyberCab” The timeline pressure on Tesla is intensifying. Official production of the “CyberCab” is scheduled for April 2026, accompanied by planned capital expenditures exceeding $20 billion this year. Yet, without the necessary test mileage and regulatory approvals in California, this entire schedule is at risk of unraveling. Investors will be watching closely to see if the company executes a drastic pivot in its testing strategy in the coming months, or if regulatory hurdles will further delay the launch of its robotaxi service. Ad