Tesla (NASDAQ: TSLA) reported a 13.5% decline in Q2 sales year-over-year, following a similar drop in Q1, and its profits fell 70% in Q1. The company is now valued at nearly $1 trillion despite these challenges, which include growing competition from Chinese electric vehicles and a significant decrease in consumer interest, particularly as the Cybertruck’s release has not met expectations.
In contrast, Waymo’s robotaxi service achieved over 1 million fully autonomous paid rides each month across Phoenix, San Francisco, and Los Angeles, demonstrating significant growth from under 50,000 rides two years ago. Tesla’s automotive earnings for FY’26 are estimated at approximately $2.90 per share, which, even at a generous 30x valuation multiple, would result in a market cap of only around $300 billion, suggesting the bulk of Tesla’s current valuation is driven by investor belief in its future in autonomous driving and robotics.
