Tesla’s Volatile Year: Autonomy Hopes Clash with Weak Vehicle Demand
Tesla's stock (TSLA) remains a battleground for investors torn between softening EV demand and the promise of autonomous driving breakthroughs. Shares recently rebounded to $420 on robotaxi optimism, but the path forward hinges on whether Tesla can transform its self-driving ambitions into a high-margin reality.
Q2 2025 results revealed a 12% revenue decline to $22.5 billion as automotive sales cooled, though energy storage showed resilience. Gross margins contracted to 15.4%, pressured by price cuts and heavy R&D spending. The coming year presents a binary outcome: either autonomy unlocks a lucrative ride-hailing network, or Tesla reverts to being a capital-intensive automaker in a cyclical industry.