TSLA Falls 2% After China Bans Retractable Door Handles YTD.

China's draft rule may force Tesla to add mechanical emergency door releases by 2027

  • Tesla faces new Chinese draft rules requiring a mechanical emergency release on all door handles by early 2027.
  • TSLA stock fell about 2% on Monday but remains up roughly 21% year-to-date and was trading near $459.
  • Sales outside the U.S., including the EU and China, have weakened through 2025.
  • Analysts are split: some cite progress on robotaxi testing and the upcoming Cybercab, while others have cut forecasts and ratings.

Tesla shares dropped about 2% on Monday after Chinese draft rules would require all vehicle door handles to include a mechanical emergency release. The rule would force a change from retractable door handles on models sold in China by early 2027 or risk a sales ban.

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The draft comes as Tesla has seen weaker sales outside the U.S. in 2025, with EU deliveries falling quarter after quarter. Despite those regional headwinds, TSLA stock has climbed about 21% year-to-date and was trading near $459, close to its 52-week high and above its 200-day simple moving average.

Definition: mechanical emergency release — a manual mechanism that lets an occupant open a vehicle door from the inside if power or automatic systems fail.

Definition: 200-day simple moving average — the average closing price of a stock over the past 200 trading days, used to indicate long-term trend.

Wall Street commentary on Tesla is mixed. Some analysts expect the company to accelerate testing and deployment of autonomous taxi services tied to the Cybercab program. “The news that Tesla is testing robotaxis without the safety monitors is in line with our expectations that the company ⁠is making progress in its testing, in ​line with management’s statements during the third ​quarter earnings call,” said Seth Goldstein, senior equity analyst at Morningstar.

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Other firms have cut ratings or forecasts. Earlier in the month, Andrew Percoco of Morgan Stanley downgraded Tesla to Equal-weight from Overweight.

Definition: robotaxi — a taxi that operates without a human driver, using autonomous driving software.

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