Tesla Slide Widens as Investors Question Musk’s Robotaxi Vision

Investor confidence in Tesla Inc. is weakening after the electric-vehicle maker reported a double-digit decline in quarterly revenue and a 16% year-over-year drop in automotive sales. The stock sank 8% on Thursday following the earnings release, clawed back 3.5% on Friday and is now 22% lower for the year—making it the worst performer among the technology mega-caps. Morningstar chief US market strategist David Sekera said the shares remain “overvalued,” citing softer deliveries in the first half and a product line that appears to have saturated its core market. Chief Executive Officer Elon Musk tried to shift attention toward future growth, telling analysts the company’s electric cars will soon operate as driverless robotaxis and generate income for owners. Tesla said a small fleet of 10–20 Model Y vehicles has logged about 7,000 autonomous miles in a pilot service around Austin, Texas, and that it aims to reach half of the US population by year-end, pending approvals. Regulatory obstacles threaten that timeline. California officials confirmed Tesla lacks the permits required to offer a driverless ride-hailing service in the state, while approvals are still needed in Nevada, Arizona and Florida. Analysts at Jefferies called the earnings update “dull,” and Goldman Sachs labeled the robotaxi program “still small,” underscoring Wall Street’s focus on near-term profitability rather than Musk’s longer-dated ambitions.