Skip to content 
Tesla’s problem is that it is not only ceasing to work on electric cars, but also on humanoid robots; the level of investor distrust is growing. The drive by Elon Musk to reform the company into a leader in artificial intelligence is happening when revenue is dwindling and the self-driving car market rivalry is intense. Although Musk has asserted that robots will characterise the future of Tesla, the market is sceptical, particularly with the shares being valued at one of the highest valuations among big corporations in the United States. As sales slow, investors are losing confidence, and the company has not proved to be a technology leader; it has a test to pass.
Musk Ties the Future of Tesla to Optimus Robots
On his social media channel X earlier this month, Musk said that 80 per cent of the value of Tesla would be Optimus, the humanoid robot project being pursued by the company. He pegged much of Tesla’s growth and even his historic \$1 trillion compensation package on the success of the project. The move, however, was questioned by analysts. Hedge Fund Telemetry founder Thomas Thornton said that markets had not done an ounce of research on robots, and this casts questions on demand, revenue potential, and the maturity of the technology.
The turn of Tesla is after deteriorating fundamentals. The company has estimated a drop in its earnings by almost 30 per cent in 2025, and its robotaxi unit is struggling with the scale of its business. Rival companies like the Waymo of Alphabet Inc. keep growing, questioning the capacity of Tesla to dominate the autonomous driving market. Dmitry Shlyapnikov of Horizon Investments has an analysis that Tesla is being rated like a growth company, yet over the last two years, it has demonstrated hardly any significant growth in revenues. He said Musk has to offer investors another growth narrative, and Optimus is the solution.
High Valuation and Investor Pressure
Tesla stocks are still among the costliest in the American market. The stock is priced at approximately 155 times the following year’s earnings, comparatively close to the 2021 technology boom when Tesla broke the trillion-dollar valuation after optimism on electric cars initially drove the company. In comparison, Nvidia is selling at 31 times forward earnings, whereas other members of the so-called Magnificent Seven, such as Alphabet, Amazon, and Microsoft, are at much lower valuations. Palantir Technologies Inc. is the only large U.S.-based company with a higher multiple.
That gap highlights investor confidence in the vision of Musk over that of Tesla in the present-day financing. However, the performance of the company depicts a contrasting image. The global market has been slowing down in sales, and the world has been threatened with stricter tariffs, pushing results to the limit. The stocks have been down about 25 per cent since they hit highs in December and are down over 10 per cent in 2011. This puts Tesla on a list of the 100 worst-performing stocks in the S&P 500 Index, despite the fact that the broader index has gone up 12% in 2025.
According to industry analysts, Tesla’s valuation is not pegged to the sales of cars. Steve Sosnick, chief strategist at Interactive Brokers, said that Tesla has never been priced as a car company but rather as a bet on Musk to create a sci-fi future. He said that with the rollout of the robotaxi stagnant, the switch to humanoid robots is the most recent effort by Musk to restart growth stories.
Self-Driving Pausings and Manoeuvring Strategies
The shift by Tesla is an indication of a trend of concentration. Upon dominating the EVs, Musk shifted the company in 2024 to autonomous driving. Investor optimism triggered a rally in shares prompted by the announcement. That excitement increased when Musk aligned himself with Donald Trump through his successful presidential campaign, giving hope of regulatory backing. But Musk has now disassociated himself with the administration, and Tesla’s self-driving plans are also stalled.
Its robotaxi service has not performed well in Austin, and approvals in other states, including in Nevada, are limited. In the meantime, the trust in the capability of Tesla to take over the field has declined. The free ride-hailing service in California by this company is not entirely autonomous, and the expansion to new markets is not happening as quickly as it should.
Safety Related and Investor Confidence
Tesla has been marred by technology problems as well. According to Bloomberg, the Tesla design features that include flush door handles, electronic releases, and others have posed safety risks during accidents. These problems have also deterred the investors in Tesla’s innovation pipeline. In spite of the hurdles, there are still investors who support the vision of Musk.
There is no other stock to purchase in case you believe Elon Musk is a genius who will transform the world with his inventions, Shlyapnikov said. Tesla is not just a carmaker, but to these supporters it is a bet on Musk. It is yet unknown whether the Optimus humanoid robot project would help Tesla jump-start its stock and regain growth. As the EV demand wanes, autonomous driving faces intense competition, and robots remain untested, the company is heading into danger.
