Part 6/9:
The automotive business metrics indicate a stark decline—projected revenues now suggest around 60% reduction based on misaligned market expectations. Issues such as delayed launches, pricing adjustments, and intensified market competition have all contributed to a significant recalibration of Tesla's automotive business outlook.
Shifting Focus: A Pivot to FSD and AI Technologies
With the automotive segment facing mounting pressures, it has become evident that investors are increasingly excited about Tesla's positions in FSD and AI technologies rather than its core production of electric vehicles. This transition illustrates how market sentiment has evolved from valuing the company primarily on automotive performance to focusing on its potential market disruptions via technology.