Tesla’s Robotaxi Ambitions Face Market Skepticism Amid Declining Auto Sales

Tesla Inc. shares remain under pressure despite a 3.5% rebound on July 25, still down 22% year-to-date. The electric vehicle Maker reported a 16% decline in automotive revenue for Q2, with regulatory credit sales dwindling and European demand softening. Elon Musk’s robotaxi vision—highlighted by a 7,000-mile Austin pilot—collides with regulatory hurdles and Waymo’s lead in autonomous testing.

Wall Street’s focus on near-term profitability contrasts with Musk’s AI and robotics narrative. Tesla has yet to secure California permits for its proposed driverless service, while competitors operate legally in the state. The disconnect between futuristic promises and execution risks mirrors crypto’s own adoption challenges, where visionary projects often outpace real-world utility.