Tesla’s Shift to Humanoid Robotics
Tesla, led by CEO Elon Musk, is shifting its focus from traditional electric vehicles to humanoid robotics, specifically the Optimus robot. Musk has announced plans to discontinue legacy models, including the Model S and Model X, to facilitate the production of Optimus at the Fremont factory.
The company is aiming to tap into a humanoid robotics market projected to reach $5 trillion by 2050. Tesla’s current stock trades at $430 per share, with a market value of $1.4 trillion and a high price-to-earnings ratio of 259, raising concerns about its valuation amid a declining vehicle sales outlook.
Analysts project significant earnings growth, estimating $2.12 per share this year and $3.00 by 2027, yet caution that investors should be mindful of the stock’s current valuation before making purchases.
