Tesla is repurposing a U.S. factory to focus on building Optimus robots, which could revolutionize the company like the iPhone did for Apple. However, some of the potential upside from AI is already factored into Tesla stock. Elon Musk plans for initial Optimus production by the end of the year.

Just as the iPhone transformed Apple from personal computing to consumer electronics, Tesla may be on the brink of a similar pivot with Optimus. The robot could lead to a services business model through proprietary autonomous software subscriptions, akin to Apple’s post-iPhone success.

Tesla stock has surged 62% since last April but faces revenue and cash flow challenges. The hype around Tesla’s AI potential currently overshadows its operational struggles, leading investors to buy into a narrative rather than a solid business. Smart investors may want to wait for Optimus production milestones to evaluate stock performance.

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