Tesla’s the odd one out among the Magnificent Seven—and not in a good way. While Nvidia prints money from AI chips, Microsoft dominates cloud, and Meta just turned profitable, Tesla’s core EV business is quietly struggling.
The Math Doesn’t Add Up:
Q3 2025 showed cracks: automotive revenue up just 6% YoY while operating margins crashed from 10.8% to 5.8%. Deliveries are flat. The company’s dumping billions into robotaxi and humanoid robots, but nothing’s generating real revenue yet.
The Robotaxi Hype vs. Reality:
Yes, autonomous ride-hailing launched in Austin and SF. But here’s the catch—it’s running on regular Model Y cars, not the mythical Cybercab that still isn’t in production. Most markets still mandate human monitors. It’s bleeding-edge tech masquerading as near-term profit.
The Valuation Killer:
Tesla trades at 178x forward earnings. That’s not priced for an EV company—it’s priced for a robotics/AI moonshot that may never materialize. Compare that to peers posting strong earnings growth with actual revenue diversity.
The Verdict:
There are way better bets in big tech right now. Tesla deserves the “wait and see” treatment, not your capital in 2026.
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Why Tesla Doesn't Deserve Your 2026 Portfolio Slot
Tesla’s the odd one out among the Magnificent Seven—and not in a good way. While Nvidia prints money from AI chips, Microsoft dominates cloud, and Meta just turned profitable, Tesla’s core EV business is quietly struggling.
The Math Doesn’t Add Up: Q3 2025 showed cracks: automotive revenue up just 6% YoY while operating margins crashed from 10.8% to 5.8%. Deliveries are flat. The company’s dumping billions into robotaxi and humanoid robots, but nothing’s generating real revenue yet.
The Robotaxi Hype vs. Reality: Yes, autonomous ride-hailing launched in Austin and SF. But here’s the catch—it’s running on regular Model Y cars, not the mythical Cybercab that still isn’t in production. Most markets still mandate human monitors. It’s bleeding-edge tech masquerading as near-term profit.
The Valuation Killer: Tesla trades at 178x forward earnings. That’s not priced for an EV company—it’s priced for a robotics/AI moonshot that may never materialize. Compare that to peers posting strong earnings growth with actual revenue diversity.
The Verdict: There are way better bets in big tech right now. Tesla deserves the “wait and see” treatment, not your capital in 2026.