Tesla shares dropped 4.8% on Thursday after CEO Elon Musk cautioned about ‘demand fragility in mature EV markets’. The remarks sparked a sell-off across EV stocks, dragging the Nasdaq EV Index down 2.1%. Analysts interpret Musk’s comments as a potential signal of slower Q4 deliveries amid rising competition from BYD and Hyundai. Despite this, long-term investors remain optimistic about Tesla’s AI-based manufacturing initiatives and cost-optimization programs targeting sustained margins in 2026.