Stocks to Watch Recap: Tesla, Lululemon, AMC, Volkswagen

Tesla (TSLA) shares dropped 5.9% after federal regulators opened an investigation into the electric vehicle maker and its steering-wheel-free Cybercab. The regulatory inquiry focuses on determining whether the autonomous vehicle complies with current federal motor vehicle safety standards, raising fresh questions about the deployment timeline for Tesla's robotaxi operations. The regulatory pressure on Tesla came amid wider market movements highlighted in the recap. Activewear retailer Lululemon Athletica tumbled 17% after cutting its full-year financial outlook for the second time this year, driven by prolonged sales weakness in its core Americas division. In contrast, European automaker Volkswagen saw its shares gain 6.5% after its supervisory board approved aggressive restructuring plans to cut up to 100,000 jobs and halve its vehicle model lineup to counter tariff impacts and Chinese competition. The regulatory probe into the Cybercab represents a key headwind for Tesla, as investor enthusiasm has increasingly hinged on the commercial viability and swift regulatory approval of its full self-driving and robotaxi platforms.