‘These Chips Will Profoundly Change the World’ and ‘Save Lives.’ Elon Musk Doubles Down on AI Chips as TSLA Stock Stagnates YTD.

Core Insights - Tesla's stock (TSLA) experienced a nearly 50% decline earlier this year but has rebounded by 3.5% year to date, although it remains 12% below its YTD highs and underperforms the S&P 500 Index [1] - The recovery is linked to CEO Elon Musk's increased focus on artificial intelligence, particularly in relation to Optimus robots and robotaxis [2][3] Company Performance - Tesla's vehicle unit sales decreased from 1.8 million in 2023 to 1.79 million in 2024, a significant drop considering sales were 1.31 million in 2022 [5] - Revenue showed a 12% year-over-year increase in Q3, but this was accompanied by a 37% decline in earnings per share [5] - Despite falling profits and slow growth, TSLA stock has maintained and even expanded its earnings multiple, trading at over 288 times trailing earnings [5] Investor Sentiment - Investors continue to value TSLA stock at a premium compared to other automakers, driven by the belief that electric vehicles represent the future [4] - There remains optimism among shareholders regarding the potential of Optimus robots to drive Tesla to new heights, despite disappointments with robotaxis [2]