Tesla's EV Loss: Bullish on AI Future

Tesla's apparent setback in EV sales masks groundbreaking advances in AI and energy, setting the stage for revolutionary growth.

Key Takeaways

• Tesla's valuation at $1.5 trillion defies sales drops, driven by AI and robotics bets.

• Energy storage doubled to 46.7 GWh with 31% margins, outpacing automotive profits.

• FSD data hits 7 billion miles, fueling unsupervised autonomy far ahead of rivals.

• Robotaxis test driverless in Austin, with mass production eyed for 2026.

• BYD's volume win comes at slashed margins, while Tesla prioritizes tech superiority.

Tesla's 2025 deliveries fell 8.5% to 1.64 million units, missing expectations and allowing BYD to claim the EV crown with 2.26 million sales. Yet, this overlooks Tesla's strategic pivot. High PE ratios reflect investor confidence in non-auto segments: AI-powered full self-driving collects billions of miles globally, enabling neural networks to handle complex scenarios no competitor matches. Energy deployment surged, with facilities scaling to meet AI data centers' exponential power needs via cost-dropping Megapacks. Robotaxis operate unsupervised in cities, leveraging fleet-wide learning over geofenced rivals like Waymo. BYD's margin squeeze for market share contrasts Tesla's vertical integration and focus on autonomy, ensuring long-term wins in trillion-dollar markets.