Tesla lacks a key quality possessed by the other “Magnificent Seven” companies. Its Robotaxi business is rolling out, but its autonomous Cybercab is not in production. Tesla’s valuation is extremely high. Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta Platforms, and Tesla form the elite group known as the “Magnificent Seven.” These companies dominate their industries and make up 35% of the S&P 500’s value.

Tesla’s core business is struggling compared to its peers. While Apple, Amazon, Alphabet, Microsoft, Meta Platforms, and Nvidia continue to see strong revenue growth, Tesla’s electric vehicle deliveries are trending downward. The company’s operating margin has also declined significantly.

Tesla is heavily investing in AI and robotics, with its Robotaxi service launched in a few markets. However, profitability at scale remains uncertain. The company’s stock is trading at 178 times expected 2026 earnings, indicating risks outweigh potential rewards. Investors may want to take a cautious approach.

While Tesla’s AI progress is commendable, its disconnect between valuation and core business raises concerns. The company’s success hinges on monetizing new ventures like the Robotaxi network, making it a risky investment. Consider waiting to see how these ventures perform before investing in Tesla.

Read more at Yahoo Finance: Ranking the Best “Magnificent Seven” Stocks to Buy for 2026. Here’s My No. 7 Pick.