Tesla's Ambitious Bets Raise Doubts About Its Core Business

Automotive sales stagnate as Tesla pivots to humanoid robots and semiconductors

Apr. 17, 2026 at 8:40pm

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An extreme close-up of Tesla's industrial machinery and equipment, conveying the physical and mechanical nature of the company's operations without using any text or symbols.As Tesla's automotive business struggles, the company's ambitious forays into new technologies raise concerns about the stock's valuation.Austin Today

Tesla's automotive business has been stalled for over two years, with deliveries and revenue declining. The company's new projects in semiconductors and humanoid robots are seen as far-fetched and unlikely to have a positive impact on its financials in the near future. Analysts warn that Tesla's stock is highly overvalued and at risk of a significant correction if the company fails to deliver on its ambitious plans.

Why it matters

Tesla's success has been largely driven by its electric vehicle business, but the stagnation in that core segment raises concerns about the company's long-term prospects. The pivot to new, unproven ventures like humanoid robots and semiconductors could distract from improving its existing products and operations, potentially leading to further erosion of its automotive market share.

The details

Tesla's automotive revenue declined from $82.4 billion in 2023 to $69.5 billion in 2025, as deliveries fell and selling prices were lower. The company's much-hyped Cybertruck has turned into a 'bust' with little customer demand. Meanwhile, Tesla's energy generation and storage segment, while growing, still only generated $13 billion in revenue last year with slim margins. The company's autonomous vehicle efforts have also seen limited release so far.

  • Tesla's automotive deliveries have been down for the last 12 months compared to 2023.
  • In 2025, Tesla's automotive revenue declined from $82.4 billion to $69.5 billion.

The players

Tesla

An American electric vehicle and clean energy company that also develops energy storage products and related products.

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What they’re saying

“It is hard to see how TerraFab or Optimus will have a positive impact on Tesla's business over the next five years.”

— Brett Schafer, Analyst

The takeaway

Tesla's ambitious pivot to new ventures like humanoid robots and semiconductors raises concerns about the company's ability to maintain its focus on improving its core automotive business, which has seen stagnation in recent years. Investors should be cautious about buying Tesla stock given the company's lofty valuation and the risks associated with its diversification efforts.