Analysts are bullish on Tesla (NASDAQ: TSLA) as it transitions to autonomous vehicles (AVs) and humanoid robots, despite falling sales and earnings. Wolfe Research predicts Tesla’s robotaxi revenue could reach $250 billion by 2035, with 17 analysts rating the stock a buy. However, Tesla’s financials are declining, with revenue falling by 3% in 2025 and earnings dropping 47% annually.

Tesla’s improving gross margin of 20.1% in Q4 and $44 billion in cash and investments by the end of 2025 signal growth potential in AV and humanoid robotics markets. AVs could be worth $1.4 trillion by 2040, while humanoid robotics are estimated to be worth $5 trillion by 2050. However, Tesla faces significant hurdles in its current financial state.

Investors should be cautious about Tesla due to declining sales and earnings, rising expenses, and a high price-to-earnings ratio of 393. Despite long-term opportunities in AVs and robotics, Tesla’s financial picture is concerning. Capital expenditures are set to double to $20 billion as the company transitions to AVs and robotics, making an investment in Tesla risky at present.

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