Tesla’s autonomous driving business could be worth trillions in the future, but the company’s revenue is still heavily reliant on selling electric vehicles, which are facing a decline. Sales have been dropping, with the latest numbers showing a 13% decrease in deliveries compared to the previous year.

The upcoming financial results for the second quarter of 2025, set to be released on July 23, are not expected to be positive. Tesla’s EV business is struggling against increased competition, leading to a significant drop in both revenue and earnings per share. The company is facing challenges in its key markets due to pricing competition from other manufacturers.

Despite the challenges in its EV business, Tesla is focusing on its autonomous driving technology, particularly the Cybercab robotaxi. Analysts predict that this venture could add trillions to Tesla’s valuation in the coming years. However, Tesla’s FSD software is not yet approved for unsupervised use, putting the company behind competitors like Alphabet’s Waymo in the autonomous vehicle space.

Investors are questioning whether to buy Tesla stock ahead of the July 23 financial report. While the potential of Tesla’s autonomous ride-hailing business is promising, it will take time to scale and generate significant revenue. With Tesla’s stock trading at a high P/E ratio and facing declining EV sales, it may not be a wise investment choice at this time.

Read more at Nasdaq: Should You Buy Tesla Stock Before July 23? The Answer Might Surprise You.