Core Viewpoint - Tesla's electric vehicle (EV) business is currently experiencing a decline, with analysts focusing more on emerging products like full-self driving (FSD) software and the Optimus humanoid robot [1] Group 1: EV Business Performance - Tesla's delivery numbers for Q2 2025 showed a year-over-year decline, with total deliveries shrinking by 1% in 2024 to 1.79 million units, marking the first annual sales decline since the Model S launch in 2011 [2][5] - In the first half of 2025, Tesla delivered 720,803 cars, down 13% compared to the same period in 2024, leading to a 9% drop in total revenue and a 71% collapse in earnings per share in Q1 [6] - Tesla's EV sales in Germany plummeted by 60% in June 2025, while overall EV sales in the country grew by 8.6%, indicating a loss of market share to competitors like BYD [7] Group 2: Competitive Landscape - Tesla is struggling to compete with lower-priced EVs from Chinese manufacturers, with BYD's entry-level Seagull EV priced under $10,000 and MG Motor's ES5 EV under $14,000 [9] - The company faces a difficult decision between engaging in a price war or shifting focus to other areas [9] Group 3: Future Prospects - Tesla is focusing on autonomous vehicles, particularly the Cybercab robotaxi, expected to enter mass production in 2026, which will utilize Tesla's FSD software [10] - Analysts predict that the autonomous ride-hailing business could significantly increase Tesla's valuation, with estimates of $1 trillion added to its valuation over the next year and $756 billion in annual revenue by 2029 [11] - However, Tesla's FSD software is not yet approved for unsupervised use in the U.S., and the company is behind competitors like Waymo in the robotaxi market [12][13] Group 4: Financial Valuation - Tesla's stock is trading at a high price-to-earnings (P/E) ratio of 172.2, significantly higher than the Nasdaq-100 index's P/E ratio of 32.3, indicating that Tesla is substantially more expensive than its tech peers [17] - The anticipated decline in earnings due to falling EV sales may lead to an even higher P/E ratio post-July 23, making Tesla stock less attractive for investment [18]