Yahoo Finance·2026-01-07 22:44Core Insights - Tesla has officially lost its title as the world's largest electric vehicle maker to BYD, a Chinese automotive company [1] - Despite the news, Tesla's share price remains above $425, close to its all-time high [1] - The article questions whether investing in Tesla shares is advisable or if funds would be better allocated to AI stocks [1] Tesla's Performance - Tesla's stock price has dipped following the loss of its title, with a reported 8.5% increase in share price for the year, which is significantly lower compared to AI stocks [4][7] - Tesla's revenue decreased by 2.1% and profits fell by 27.8% over the past year [6][7] AI Stocks Performance - In 2025, AI stocks experienced remarkable growth: Vertiv's stock rose by 54.5%, Alphabet's by 66.5%, and Micron's by 275% [4] - Revenue growth for AI companies was modest: Alphabet's revenue increased by 10.2%, Vertiv's by 21%, and Micron's by 35.1% [5] - Profit growth for AI companies was substantial: Alphabet's net income rose by 24.1%, Vertiv's by 108.6%, and Micron's by 154.9% [6] Investment Comparison - For the cost of two Tesla shares (over $800), investors could purchase one share each of Alphabet, Micron, and Vertiv, totaling approximately $805 [3] - The article suggests that the AI stocks are more reasonably valued compared to Tesla, despite their significant price growth [7][8] - Overall, the performance of AI stocks appears to be a better investment option compared to Tesla, given their growth in both revenue and profits [8]