Tesla Stock: EV Giant Begins 2026 With Solid China Sales As Musk Appears To Shift Focus | Investor's Business DailyBREAKING: [Eli Lilly Surges As Obesity Drugs Fuel Strong Earnings, Guidance]---Tesla (TSLA) sales of China-made electric vehicles in January increased more than 9% compared to a year ago, representing a decent start to the year even as CEO Elon Musk seems to be shifting focus away from EV manufacturing to focus more on autonomous vehicles and humanoid robots. China-made Tesla Model 3 and Model ...

Core Viewpoint - Elon Musk's merger of SpaceX with his AI venture xAI indicates a significant shift in his corporate strategy, reflecting challenges faced by Tesla and the potential for growth in SpaceX and xAI [1][2]. Tesla Overview - Tesla's market capitalization is approximately $1.58 trillion, which is 26% higher than SpaceX's private valuation of $1.25 trillion [2]. - Tesla's stock has declined by 6% in 2026, with a reported 16% year-over-year drop in vehicle deliveries and a 3% decline in total revenue for 2025, marking its first annual revenue decline [3][4]. - The company is facing increased competition in the electric vehicle market, particularly from manufacturers in China and Europe, and has been impacted by the removal of federal tax incentives for EV purchases in the U.S. [4]. Strategic Shifts - Musk is redirecting Tesla's focus towards Robotaxi services and Optimus humanoid robots, despite facing significant competition in these areas [5]. - Production of Tesla's Model S and X vehicles is being halted as the company reallocates resources to new priorities, with these models contributing less than 3% to annual deliveries in 2025 [5]. SpaceX Overview - SpaceX is a leading provider of orbital launch services, with contracts worth billions from NASA and the Department of Defense, and operates the Starlink satellite internet service with over 9,000 satellites and approximately 9 million customers [7]. - The merger values SpaceX at $1 trillion and xAI at $250 billion, with SpaceX reportedly pursuing an IPO this year [8]. Financial Performance - SpaceX generated about $15 billion in revenue and $8 billion in profit last year, while Tesla reported nearly $95 billion in sales and adjusted earnings of about $5 billion for 2025, indicating a steep decline from the previous year [17]. - Tesla has committed to investing $2 billion in xAI, which is now considered a SpaceX investment following the merger [18]. Regulatory and Legal Challenges - xAI is under investigation in multiple jurisdictions for issues related to its Grok image generator, which has raised concerns about the creation of explicit deepfake images [13]. - The merger may introduce legal and regulatory risks that could affect SpaceX shareholders, as the intertwined nature of Musk's companies could impact their regulatory standing [12][14].

Core Viewpoint - Tesla is undergoing significant changes to adapt its business model for future growth, focusing on autonomous vehicles and humanoid robots despite recent declines in electric vehicle sales [1][2]. Sales Performance - Tesla sold 1.79 million passenger EVs in 2024, marking a 1% decrease from the previous year, which accelerated to a 9% decline in 2025 with only 1.63 million deliveries [3]. - EV sales account for 73% of Tesla's total revenue, making the decline a critical concern for investors [3]. Competitive Landscape - Increased competition from legacy automakers and budget-friendly options from companies like BYD has contributed to Tesla's struggles, with BYD's sales in Europe rising by 228% while Tesla's fell by 37% [4][5]. Strategic Shifts - CEO Elon Musk announced the discontinuation of the Model S and Model X to allocate manufacturing capacity for the development of the humanoid robot, Optimus [2][6]. - The Cybercab, Tesla's autonomous robotaxi, is expected to generate new revenue streams, operating 24/7 using Tesla's Full Self-Driving software [7]. Regulatory Challenges - The unsupervised version of Tesla's Full Self-Driving software has not yet received regulatory approval in the U.S., which is necessary for the Cybercab to launch [8]. Future Prospects - The elimination of certain EV models is intended to enhance production capacity for Optimus, which Musk believes could generate $10 trillion in revenue over time [9]. - Humanoid robots are expected to have diverse applications, potentially outnumbering humans by 2040 [10]. Valuation Concerns - Tesla's earnings fell by 47% to $1.08 per share in 2025, resulting in a price-to-earnings (P/E) ratio of 396, significantly higher than the Nasdaq-100 index average of 32.6 [12]. - Despite the high valuation, investors continue to pay a premium for Tesla, driven by confidence in Musk's long-term vision [13]. Investment Outlook - While Tesla's future may hold promise, the current high valuation poses risks, especially with declining EV sales and the need for new products to generate revenue soon [14][15].

Core Viewpoint - Tesla is undergoing a significant pivot from traditional automotive models to a focus on physical AI, including autonomous driving and humanoid robots, marking a new phase in its growth [2][4]. Valuation Insights - Tesla's valuation remains challenging, with a market capitalization exceeding $100 billion and trading at over 150 times forward earnings, indicating a disconnect between stock price and near-term fundamentals [4][5]. - The market is currently placing less emphasis on near-term earnings, suggesting that Tesla's stock may remain elevated due to strong retail and technical support [5][6]. Robo Taxi Development - The primary focus for Tesla this year is on scaling the commercialization of its robo taxi service, with efforts to expand operational design domains (ODD) and compete against established players like Waymo [8][13]. - Tesla's potential cost advantage in the robo taxi market is significant, as its vehicles could be priced around $30,000 compared to competitors like Waymo, which costs between $100,000 to $150,000 per vehicle [13]. Humanoid Robot Progress - The humanoid robot initiative is still in the research and development phase, with initial production of the Gen 3 version expected later this year, but the market remains cautious until more concrete advancements are demonstrated [9][15]. - Tesla's AI capabilities and supply chain advantages are seen as key factors that may support its humanoid robot ambitions, despite competition from other players in the market [16][17].

Group 1: Tesla and Automaker Insights - Tesla announced its first annual sales decline, with fourth quarter sales down 3% year-over-year and the auto segment down 11% [7] - Despite the sales decline, Tesla's fourth quarter earnings exceeded Wall Street expectations, leading to a rise in shares [2] - The company is pivoting towards humanoid robots, with long-term projections suggesting a significant impact on US GDP [2] Group 2: Economic Outlook and Federal Reserve - The Federal Reserve decided to keep interest rates on hold, breaking a streak of three consecutive rate cuts, and indicated rates will remain steady until further data suggests otherwise [5][6] - The Fed raised its assessment of economic growth, noting signs of stabilization in the unemployment rate [5] - CFO of Deutsche Bank expressed confidence that US economic strength will support global economic growth, with sustainable growth rates projected at around 3.5% [3] Group 3: SAP and Cloud Business - SAP met its fourth quarter sales forecasts and anticipates revenue growth in its cloud business of up to 25% in the upcoming year [4] Group 4: Meta and Microsoft Earnings - Meta's shares surged after reporting fourth quarter earnings that surpassed expectations, driven by holiday demand and AI performance gains [8] - Microsoft experienced a sharp decline in shares despite beating earnings expectations, attributed to slower cloud growth and record spending [8] Group 5: Whiz Air Performance - Whiz Air reported third quarter revenue of 1.296 billion, exceeding IBIS estimates of 1.236 billion [9] - The airline expects full-year capacity growth of around 10% and net income projected between -25 million to +25 million for 2026 [10] - CEO highlighted ongoing supply chain challenges and geopolitical issues affecting operations, particularly in the context of the war in Ukraine [12][14] Group 6: RO's Financial Performance - RO reported a core full-year operating profit of 21.8 billion Swiss Francs, slightly below analyst expectations, with a 7% sales growth and 13% operating profit growth [33][34] - The company is optimistic about its pipeline, with plans to launch up to 19 new medicines by the end of the decade [36][39] - Concerns about loss of exclusivity for blockbuster drugs in 2029-2030 were addressed, with management confident in offsetting this through new product launches [38][39] Group 7: Jivodan's Market Position - Jivodan reported a 5.1% growth for the year, maintaining high levels of profitability despite higher input costs and margin compression [58][60] - The company is experiencing strong growth in fine fragrances, particularly in local and regional brands, which are less affected by market fluctuations [64][72] - Jivodan's diversified business model and natural hedges against market volatility position it well for future growth [71]

Did This Trio Confirm the Mag 7's Magnificence After Earnings?ETF Trends is now VettaFi. Read More -- Meta, Microsoft, and Tesla reported earnings after the bell, with investors looking for indicators that the Magnificent Seven is still magnificent in the early going of 2026. The result—so far so good—but was it magnificent? Traders will have to digest the data and decide.Earnings by Meta and Microsoft, in particular, could help gauge whether the artificial intelligence (AI) theme is still running hot. Both ...

Tesla (NASDAQ: TSLA) had a rough 2025. It saw a contraction in sales for its electric vehicles (EVs) and much more tepid share price growth than its investors have become accustomed to. Love him or hate him though, Tesla CEO Elon Musk has a history of achieving his goals that makes betting against him a losing proposition most of the time. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks ...

Core Viewpoint - Hyundai Motor's labor union in South Korea has issued a warning against the deployment of humanoid robots by the automaker, citing concerns over potential "employment shocks" that could arise from such technology [1] Group 1 - The labor union emphasizes the need for union approval before any deployment of humanoid robots [1] - The union's stance reflects broader concerns about job security and the impact of automation on employment within the automotive industry [1]

Core Viewpoint - Tesla's stock performance may be significantly impacted by the upcoming Q4 2025 earnings report, scheduled for January 28, 2026, following a year of evading business-side issues [1] Group 1: Delivery Performance - Tesla's recent delivery report showed underperformance, with 418,227 cars shipped and 434,358 produced, falling short of the expected 426,000 for the quarter [2] - The company's expansion efforts in new markets have been mixed, exemplified by only 227 vehicle registrations in India throughout 2025 [2] Group 2: Leadership and Innovation Concerns - Concerns persist regarding Elon Musk's divided attention among multiple companies, which may affect Tesla's performance [3] - The trademark for Tesla's 'Cybercab' was suspended due to a late filing, allowing a French beverage company to secure it first [4] - Musk's history of overpromising on autonomous vehicles and humanoid robots continues, with both the 'Cybercab' and 'Optimus' android reportedly still years away from production [5] Group 3: Business Model Changes - A potential positive development for Tesla is the shift from a one-time purchase option for the self-driving system, priced at $9,000, to a subscription model at $99 per month starting February 14, 2026 [6] Group 4: Market Sentiment and Stock Performance - Wall Street's consensus on Tesla stock has shifted towards 'Hold' or 'Sell' ratings, with the average 12-month price target at $394.12, which is 10.26% below the latest close [7][9] - Despite various challenges, Tesla stock closed at $439.20 on January 14, 2026, representing a 104.99% increase from its 52-week low of $214.25, and has rallied 41% in the last six months [10][13]

Core Viewpoint - Tesla stock is currently overvalued as investors speculate on future products like the Cybercab and Optimus, despite significant short-term challenges in its EV business [1][3]. Group 1: Current Financial Performance - Tesla's EV business accounts for 75% of its total revenue, but it experienced the largest sales decline in company history in 2025, with total deliveries dropping by 8.5% to 1.63 million vehicles [2][6]. - The company delivered 418,227 EVs in Q4 2025, falling short of Wall Street's expectations, marking a significant downturn in performance [6][17]. - Tesla's market share in Europe decreased from 2.4% to 1.7% in 2025 as consumers opted for lower-cost alternatives, such as BYD's Dolphin Surf EV priced at $26,900 [7]. Group 2: Future Product Prospects - The Cybercab and Optimus are projected to be several years away from mass commercialization, with the Cybercab expected to enter production by the end of 2026 [10][11]. - The Cybercab could generate a new revenue stream estimated at $756 billion annually by 2029, contingent on the approval of Tesla's full self-driving software [11][12]. - Optimus is anticipated to become Tesla's most successful product, with a potential revenue of $10 trillion by 2040, although mass production is not expected until late 2026 [13][14]. Group 3: Valuation Concerns - Tesla's price-to-earnings (P/E) ratio stands at 292, significantly higher than other tech companies valued over $1 trillion, indicating a potential overvaluation [15]. - The upcoming fourth-quarter results are expected to reflect a sharp decline in profits due to weak EV sales, which may further inflate the P/E ratio [17][18].