Tesla’s Future Hinges on Robotaxi and Self-Driving Technology Amid EV Sales Decline

Tesla's stock remains a high-risk, high-reward bet as investors weigh the company's future against its declining electric vehicle sales. The automaker's fortunes increasingly depend on its robotaxi and unsupervised full self-driving (FSD) offerings, which could redefine its valuation beyond traditional car manufacturing.

EV deliveries have dropped 13% year-over-year for two consecutive quarters, pressured by high interest rates and reduced federal tax credits. CEO Elon Musk warns of "a few rough quarters" ahead, shifting focus to Tesla's technological edge in autonomous driving.

The coming year will prove critical for Tesla's robotaxi ambitions. Success in this arena could offset weakening car sales, while setbacks may amplify investor skepticism. Market participants are pricing Tesla as a tech disruptor rather than an automaker—a narrative that must materialize to justify current valuations.