Tesla Pivots to Robots as Investors Question Sales and Soaring Valuation

Core Viewpoint - Elon Musk is attempting to shift Tesla's focus from electric vehicles to humanoid robots, but investors are skeptical due to stagnating sales and high stock valuations [1][2]. Group 1: Tesla's Strategic Shift - Musk announced that approximately 80% of Tesla's value will come from its robot initiative, Optimus, although this is a future projection [2]. - The robotaxi business is projected to take years to become profitable and faces significant competition from companies like Alphabet's Waymo [2]. Group 2: Financial Performance and Valuation - Tesla's earnings for 2025 are expected to decline by nearly 30%, indicating potential financial struggles ahead [2]. - The company's stock is currently priced at around 155 times its expected earnings over the next 12 months, comparable to valuations during the tech boom of 2021 [3]. - Tesla is the most expensive stock among the "Magnificent Seven," with the next closest being Nvidia at 31 times forward earnings [4]. Group 3: Investor Sentiment and Market Dynamics - Analysts express concerns that Tesla's stock is valued like a growth company despite minimal revenue growth over the past two years [5]. - There is a sense of confusion among investors as Musk frequently alters his narrative regarding Tesla's future direction [5].