Tesla’s disappointing earnings report led to a slide in its stock price, which is now down more than 20% for the year. Despite CEO Elon Musk’s promises of futuristic innovations like robotaxis and autonomous driving, investors are focusing on the company’s immediate challenges, including rising competition from lower-cost EV competitors and regulatory hurdles.
Vehicle sales are slumping, profits are thinning, and revenue from regulatory credit sales is expected to dry up due to Republican-led policy changes. Analysts at Canaccord Genuity say that Tesla needs to address its profit and loss statement issues before it can benefit from its long-term growth opportunities in robotaxis and robots.
The company’s electric vehicles will soon become driverless, Musk claimed, but investors are skeptical about the timeline. The Nasdaq is trading at a record, but Tesla’s stock has fallen 22% this year, making it the worst performance among tech’s megacaps. Musk remains optimistic, predicting that Tesla could reach $20 trillion in value someday.
However, regulatory hurdles remain significant, particularly in California. Tesla has not applied for permits to launch its robotaxi service, which is expected to expand to other states if regulatory approvals are obtained. The company claims it is working on regulatory approvals, but offers no details about what would be required.
Despite Musk’s promises, Alphabet’s Waymo has made significant strides in autonomous driving, with over 100 million miles driven on public roads and testing in more than 10 cities this year.
Source: https://www.cnbc.com/2025/07/26/tesla-investors-grow-wary-of-elon-musk-robotaxi-promises.html