Tesla stock TSLA fell 3% on Tuesday, giving back part of its 5.5% gain from the previous session as investors reassessed the company’s robo-taxi prospects and digested mixed vehicle registration data from Europe.

Tesla shares were down 3.1% during Tuesday’s session, compared with declines of about 0.5% for both the S&P 500 and Dow Jones Industrial Average.

The stock’s Monday rally was widely linked to renewed optimism around Tesla’s self-driving taxi business. However, investors remain focused on whether the company can scale its robo-taxi operations meaningfully enough to justify the enthusiasm surrounding autonomous driving.

Robo-taxi ambitions face scaling questions

Tesla launched its robo-taxi service in Austin, Texas, in June 2025 and has since expanded operations to several cities, including Miami and Dallas. However, growth has remained relatively slow.

Gary Black, co-founder of Future Fund, estimated that Tesla’s robo-taxi fleet consists of about 100 vehicles. That compares with an estimated fleet of nearly 4,000 vehicles operated by Alphabet’s Waymo across more than a dozen US cities.

Black described Monday’s rally as Tesla bulls getting ahead of themselves, highlighting the gap between expectations and the current scale of Tesla’s robo-taxi operations. 

Tesla’s shares remain only a few dollars above their level in late June 2025, shortly after the robo-taxi launch, despite the recent gains. This indicates that investors are still waiting for the business to expand substantially.

Competition in the autonomous ride-hailing market is also increasing. 

Amazon’s Zoox is offering robo-taxi rides, while Waymo has expanded its presence and is promoting its service through advertising.

Investors weigh autonomous driving valuation

The potential size and profitability of the robo-taxi market remain uncertain. 

Tesla is competing against established and emerging players, making it difficult to determine which company will capture the largest share of the market.

The economics of autonomous ride-hailing are another key consideration for investors. 

Morgan Stanley values Tesla’s autonomous driving technologies at roughly $1 trillion, around six times the value it places on the company’s traditional car business.

That valuation highlights the importance of Tesla’s self-driving ambitions to its broader investment case and helps explain why developments around the robo-taxi business can influence the stock.

Tesla Europe sales show mixed picture

Tesla’s August vehicle registrations across several European markets provided a mixed picture. 

Registrations, which serve as a proxy for sales, increased 279% year over year in France and 104% in Denmark, according to industry data.

However, registrations declined 79% in Norway and Spain, 41% in Sweden, 37% in Portugal and 36% in Italy.

Rico Luman, senior economist at ING Research, said France and Denmark benefited from increasing electric vehicle adoption and Tesla’s more affordable pricing. 

Matthias Schmidt, a European auto market analyst at Schmidt Automotive, attributed the decline in Norway partly to difficult comparisons with the previous year, when buyers accelerated purchases ahead of a fiscal policy change.

Tesla’s European sales have rebounded this year after two consecutive annual declines, helped by easier comparisons, higher fuel prices, government incentives and growing consumer interest in electric vehicles.

Registration data from the UK and Germany, Europe’s two largest car markets, is due later this week and could provide additional insight into Tesla’s sales performance across the region.

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Duolingo stock has crawled back in the past few months, moving to its highest point since January this year. DUOL soared to $162, up by 77% from its lowest level this year. There is a risk that the stock may be on the verge of a reversal.

Duolingo is in a transition from growth to value

Duolingo, the popular online learning platform, is facing some major challenges as its business model is disrupted by artificial intelligence (AI) tools. 

As a result, the management has decided to focus on its user growth, with the goal of boosting its active users from 58.7 million today to 100 million in the coming years. 

To do that, the company is adding more services like chess and maths, and boosting its marketing spending. These activities have had an impact on its margins, with its net profit margin falling to 11.8% from the previous 17.8%.

The most recent results showed that Duolingo’s paid subscribers rose by 17% YoY to 12.7 million, while its revenue jumped by 18% to $298 million. Its results also showed that its net income falling by 26% to over $33 million. 

The management and analysts expect the company’s growth to continue in the coming quarters. For example, analysts expect the upcoming earnings to show that its revenue rose by 11.45% in Q3 to $302 million. For the year, analysts expect the revenue to jump by 16% to $1.22 billion, followed by 13% next year. 

These numbers imply that the company is in a transition from growth to value, meaning that its valuation multiples will need to be adjusted. Indeed, the forward price-to-earnings ratio has dropped to 22, much lower than its historical level. This multiple is in line with that of the S&P 500 Index.

Some analysts believe that Duolingo stock has more upside to go. For example, Evercore analysts believe that the shares will jump to $210, up by about 35% from the current level. However, many analysts have a mild outlook for the shares, with JPMorgan’s Bryan Smilek boosting his target from $125 to $135, down from where it is today. 

Duolingo stock faces a technical risk

DUOL stock chart | Source: TradingView

The risk, however, is that the DUOL stock is facing some technical risks. One of them is that it is forming a rising broadening wedge pattern, a common bearish reversal sign in technical analysis. This pattern is made up of two ascending and diverging trendlines. 

The two lines of the Percentage Price Oscillator (PPO) have jumped in the past few months. Also, the stock remains above the 100-day Exponential Moving Average (EMA). 

While these are bullish signs, the rising broadening wedge and the forming abandoned baby candle points to a reversal, potentially to the key support of $134. A move above the upper side of the wedge will point to more gains.

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Micron Technology MU stock fell 3% on Tuesday as concerns over a potential strike by its Taiwan-based workforce added pressure to the memory-chip maker’s shares.

Labor unions representing Micron employees in Taoyuan and Taichung said they were moving toward possible strike action unless the company overhauls its bonus system and increases profit-sharing with employees.

The unions told Reuters that they have nearly 10,000 members among Micron’s roughly 15,000 employees in the two cities.

More than 80% of participating union members backed strike action in an internal online survey conducted in August, according to the unions.

The labor dispute comes as Micron faces strong demand for memory chips used in artificial intelligence hardware and as Taiwan remains a critical manufacturing base for the company.

Taiwan unions push for profit-linked bonuses

The unions are seeking changes to Micron’s Incentive Pay Plan, arguing that the existing system does not adequately reflect the company’s profitability.

For fiscal 2026, the unions are seeking an additional one-off bonus payment that they estimate would amount to about 83 months of salary for each Taiwan-based employee.

From fiscal 2027, the unions want Micron to replace the existing system with one that allocates 15% of operating profit to employee bonuses. They are also seeking quarterly rather than annual bonus payments.

Micron’s current Incentive Pay Plan calculates annual bonuses using company and individual performance measures.

The unions have questioned how the company-performance component is calculated, arguing that it appears to track revenue growth more closely than profitability.

Micron said its compensation structure differs from the profit-sharing model proposed by the unions.

The company said employee compensation includes base salary, annual performance incentives, operational bonuses and equity programs such as stock-purchase and restricted-stock plans.

Micron’s Taiwan office also said this year’s performance-bonus payout would be the highest in the company’s history and that it would continue engaging with employees through existing channels while respecting applicable legal processes.

Potential strike could disrupt key operations

Taiwan is Micron’s largest manufacturing base, according to authorities in Taipei. The company has invested NT$1.4 trillion, or about $43.9 billion, on the island and produces DRAM and high-bandwidth memory chips there.

The Central Taiwan Science Park administration said it was monitoring the dispute and had assigned staff to facilitate communication between Micron and the unions.

It also said a strike could affect workers, Micron’s operations and potentially Taiwan’s semiconductor supply chain and wider economy.

The dispute comes as global demand for memory chips used in AI hardware has tightened supply and supported strong sector profits.

Micron reported record fiscal third-quarter revenue of $41.46 billion and net income of $28.24 billion for the quarter ended May 28.

Micron dispute follows wider chip labor tensions

Micron’s labor dispute echoes developments at other major Asian semiconductor manufacturers.

At Samsung Electronics in South Korea, a planned strike involving as many as 48,000 union members was called off in May following last-minute negotiations.

That agreement established a special bonus pool worth 10.5% of the chip division’s operating profit, subject to profitability targets.

Micron’s Taiwan unions said profit-sharing arrangements at Samsung and SK Hynix had widened the gap between Micron employees and their South Korean counterparts.

The dispute also comes as Taiwan seeks to reinforce its position as a reliable global semiconductor production hub.

Taiwan President Lai Ching-te said the island’s semiconductor industry had been built through specialization and long-term cooperation and that Taiwan had consistently supplied global markets and honored its commitments.

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US-Iran tensions intensified as Washington launched fresh strikes against Iranian targets, raising concerns about renewed disruptions to oil flows through the Strait of Hormuz.

Apple stock rose as John Ternus formally took over as chief executive, beginning the company’s first CEO transition since 2011.

Gold prices fell to a two-week low as higher Treasury yields and a stronger dollar pressured bullion. Oil prices jumped about 4% as renewed fighting revived fears of supply disruptions from the Middle East.

US launches new Iran strikes

The US launched a fresh wave of strikes against targets in Iran on Tuesday, marking a renewed escalation in the conflict after weeks of relative calm.

US Central Command said the strikes targeted Islamic Revolutionary Guard Corps positions following attacks on commercial shipping in the Strait of Hormuz and US forces in the region.

The latest attacks followed reports that two oil supertankers attempting to leave the Strait of Hormuz had been hit by projectiles.

The incidents came after the US said it had targeted Iranian rocket launchers preparing to place mines in the strait, while Iran retaliated with attacks on the United Arab Emirates and Jordan.

The renewed fighting has raised concerns over energy supplies because Hormuz is a major global oil shipping route.

Oil shipments had recovered to about half of pre-war levels during the period of reduced hostilities.

A prolonged return to fighting could increase energy costs and inflation pressures while adding uncertainty for global investors.

Apple stock rises as John Ternus takes charge

Apple stock rose about 3% on Tuesday after John Ternus formally became the company’s chief executive, succeeding Tim Cook.

Ternus is a 25-year Apple veteran who previously led hardware engineering teams responsible for products including the iPhone, Mac and iPad. His appointment marks Apple’s first CEO transition since 2011.

Cook, who succeeded co-founder Steve Jobs in August 2011, is moving into the role of executive chairman.

During his tenure, Apple expanded from a business valued at roughly $350 billion to one worth more than $4.5 trillion.

Investors appeared to view the leadership change as an orderly transition.

Ternus now faces the challenge of navigating competition in artificial intelligence while maintaining Apple’s product momentum and supporting future hardware growth.

Gold price falls below key technical level

Gold prices dropped more than 2% on Tuesday, reaching a two-week low as higher Treasury yields and a stronger US dollar weighed on bullion.

Spot gold fell 2.7% to $4,326.99 an ounce, after touching $4,362.89 earlier in the session. US gold futures declined 2.34% to settle at $4,376.50.

Gold’s move below its 200-day moving average, currently around $4,528, added to technical selling pressure.

Treasury yields also climbed to their highest level since January 2025 as renewed Middle East tensions increased inflation concerns.

Higher interest rates and Treasury yields typically weigh on gold by increasing the opportunity cost of holding the non-yielding asset.

A stronger dollar also makes gold more expensive for buyers using other currencies.

Markets are now focused on upcoming US employment data, including the ADP report and nonfarm payrolls, for clues about the Federal Reserve’s policy outlook.

Oil prices jump as Middle East tensions escalate

Oil prices climbed about 5% on Tuesday as renewed US-Iran fighting increased concerns over potential disruptions to crude supplies from the Middle East.

Brent futures rose 5.11%, to $95.10 a barrel, while West Texas Intermediate crude gained 5.62%, to $90.54. Both benchmarks were on track for their strongest closes in several weeks.

The renewed attacks came after the first direct exchange of strikes between the US and Iran since July and reports of tanker attacks near the Strait of Hormuz.

Iran has warned that it could prevent oil exports from the Gulf, increasing uncertainty around global energy flows.

The market is also dealing with broader refining disruptions.

Diesel prices in the US reached a 52-month high on Tuesday after rising about 51% over the previous 10 weeks. The diesel crack spread, which measures refining margins, climbed to a record high near $106 a barrel.

Investors are also awaiting weekly US oil inventory data. Analysts expect energy companies to have withdrawn about 0.8 million barrels of crude from storage in the week ended August 28, which would mark the first decline in five weeks.

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US stocks fell on Tuesday as investors began September amid rising oil prices, higher global bond yields and renewed concerns over inflation.

The Dow Jones Industrial Average declined 0.79%, while the S&P 500 and Nasdaq Composite also closed lower as markets assessed the potential impact of renewed US-Iran hostilities on energy prices and Federal Reserve policy.

Stocks fall as oil prices fuel inflation concerns

The Dow shed 419.02 points, or 0.79%, to end at 52,766.88. The S&P 500 declined 0.71% to 7,631.47, while the Nasdaq Composite fell 1.03% to 26,099.77.

Oil prices rose sharply after the US launched fresh strikes against Islamic Revolutionary Guard Corps targets in Iran.

US West Texas Intermediate crude gained 5.2% to settle at $90.22 a barrel, while Brent futures rose 4.6% to close at $94.65.

The latest increase extended oil’s advance after military action between the US and Iran resumed. A tanker traveling through the Strait of Hormuz was also hit by three unknown projectiles on Monday.

The escalation has increased concerns that disruptions to energy supplies could persist, adding to inflation pressures and creating further uncertainty for financial markets.

Energy was the strongest-performing sector among the 11 major S&P 500 sectors, supported by higher crude prices.

The Dow Jones Transportation Average was among the biggest laggards, while all constituents of the Philadelphia Semiconductor Index ended lower.

Global bond yields climb as Fed hike bets rise

Bond yields continued to move higher across major economies, adding pressure to equities.

The US 10-year Treasury yield reached levels not seen since January 2025, while Japan’s 10-year yield climbed to its highest level since August 1996. Germany’s benchmark yield also reached a high not seen since 2011.

Markets have been concerned that elevated oil prices could keep inflation higher and influence central bank decisions.

The Federal Reserve is scheduled to meet later this month, with investors increasingly pricing in the possibility of a rate hike.

CME’s FedWatch tool showed a roughly 68% probability of a 25-basis-point rate increase at the September meeting, up from 39.6% a week earlier.

Recent economic data has provided mixed signals.

The Labor Department’s JOLTS report showed slower labor-market churn, while manufacturing activity has weakened and residential construction spending has declined.

The data also pointed to continued price pressures and uncertainty linked to tariffs and geopolitical tensions.

September begins with seasonal and geopolitical risks

The market’s decline also comes as investors enter a month that has historically been challenging for equities.

September has recorded the weakest average stock-market performance of any month since 1926, according to data cited by Fisher Investments.

Renewed US-Iran fighting has added another source of uncertainty.

The US launched new airstrikes around the Strait of Hormuz, while Iran warned that it could prevent oil exports from the Gulf. The US has also indicated that additional sanctions against Iran could be announced.

Investors are now awaiting the August nonfarm payrolls report due Friday, alongside other economic indicators, for clues about the Federal Reserve’s next move.

With oil prices rising and bond yields climbing, markets remain sensitive to any evidence that inflation could stay elevated.

The combination of geopolitical risks, tighter financial conditions and uncertainty over monetary policy weighed on stocks as the new month began.

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