From Nasdaq: 2025-04-11 12:07:00

Tesla (NASDAQ: TSLA) stocks have plummeted by 28% this year, while the S&P 500 is down by 7%, due to competition and political pressure. Despite this, Tesla aims to shift focus to AI, self-driving, and robotics. The company’s future success hinges on this transition away from traditional automotive manufacturing.

Tesla’s automotive segment is struggling, with a 13% decline in vehicle deliveries in Q1. The company faces competition and brand erosion, impacting its growth potential. With a high forward P/E ratio of 98, Tesla’s valuation is under scrutiny, needing growth to justify its current stock price.

Transitioning towards robotics and AI, Tesla is working on a humanoid robot called Optimus. CEO Elon Musk projects $10 trillion in sales for this robot, but skepticism remains due to Musk’s past overpromising. The company’s move towards self-driving cars presents a more promising opportunity for growth and revenue diversification.

Investors should exercise caution amidst volatile U.S. government policies and escalating tensions with China. While Tesla is shielded from direct tariffs, anti-American sentiment could impact the company. Waiting for more clarity before investing in Tesla may be prudent to avoid potential risks.

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