"Eager to transform the carmaker into an artificial intelligence powerhouse, Musk earlier this month declared on his social-media platform X that about 80% of Tesla's value will be Optimus, referring to the company's robot initiative. But that's for the future. In the here and now, Tesla's 2025 earnings are expected to sink nearly 30%, while its robotaxi business is still years from turning a profit and faces stiff competition from Alphabet Inc.'s Waymo, among others."
"You can pin any kind of valuation to robots at this point, said Thomas Thornton, founder of Hedge Fund Telemetry. The markets have not done an ounce of research on robots. What companies are out there? How good is their technology? How much are they making? And is there really a demand for personal robots? Tesla's performance has suffered an industrywide EV slowdown that hit in 2023 and worsened in 2024. But at the same time, its stock has gotten increasingly expensive."
Tesla faces stagnating sales and an industrywide EV slowdown that intensified in 2024, with 2025 earnings expected to drop nearly 30%. Elon Musk is pushing the company toward humanoid robots and AI, claiming Optimus could represent about 80% of Tesla's value, but the robot and robotaxi businesses are years from profitability and face competition from firms like Waymo. Investors view the stock as richly valued, trading around 155 times forward earnings — a multiple comparable to the 2021 tech frenzy and far above peers such as Nvidia. Market skepticism centers on uncertain robot demand and limited industry research.
Read at www.mercurynews.com
Unable to calculate read time
Collection
[
|
...
]