Stock Market Today, Dec. 17: Tesla Shares Fall After California Moves to Restrict Autopilot Branding

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Regulators are challenging Tesla’s self-driving claims, putting its AI and robotaxi ambitions under renewed scrutiny, today, Dec. 17, 2025.

Today’s Change

(-4.58%) $-22.46

Current Price

$467.42

Tesla (TSLA 4.58%) is a leading manufacturer and supplier of electric vehicles and energy storage solutions, with numerous future projects planned, including autonomous robotaxis and robotics. Trading volume reached 105 million shares, coming in nearly 22% above its three-month average of 85 million shares. The stock closed at $467.26, down 4.6% on the day.

Wednesday’s trading saw Tesla retreat from recent record highs after California’s DMV actions against its “Autopilot” branding raised fresh regulatory questions that investors are watching.

How the markets moved today

The S&P 500 (^GSPC 1.16%) fell 1.2% to 6,722, while the Nasdaq Composite (^IXIC 1.81%) lost 1.8% to finish at 22,694. Within the automotive space, industry peers Ford Motor Company (F 2.67%) and General Motors (GM 1.53%) declined 2.6% and 1.5%, respectively, as investors weighed legacy automakers’ EV strategies against Tesla’s AI and robotaxi focus.

What this means for investors

Before today’s news, Tesla had been having a good week, with shares hitting record highs and the company’s market cap approaching $1.7 trillion. CEO Elon Musk also weighed in on Tesla’s robotaxi efforts, confirming the company was testing driverless vehicles without safety monitors. This represents progress for the robotaxi business.

However, the news today of a possible sales ban over Tesla’s use of the term “autopilot” has dampened some of the market’s enthusiasm from earlier in the week. The California DMV initially brought action against Tesla in 2023 over the Autopilot name, but the two parties were unable to come to a resolution. Investors should keep an eye on this, as possible court action may result from the threatened sales suspension.

Jeff Santoro has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.