/ January 26, 2026 Tesla faces a defining week as it prepares to release its quarterly figures. The electric vehicle giant finds itself in a precarious position, caught between a rapidly deteriorating core automotive business and CEO Elon Musk’s ambitious, long-term technological promises. Investors are left questioning whether future visions can continue to support the company’s astronomical valuation, especially as Chinese rival BYD has now firmly taken the global sales crown. A Valuation Built on Promise The most critical issue for shareholders remains Tesla’s fundamental valuation. Trading at a forward price-to-earnings (P/E) ratio exceeding 200, the company’s shares are valued more than five times higher than Nvidia and nearly ten times that of Meta. This premium is almost entirely predicated on the expectation that Tesla’s autonomous robotaxi business will soon become a dominant, high-margin reality. However, this bet grows increasingly risky as competition from companies like Waymo and Zoox intensifies. Against this backdrop, mere announcements will not suffice when Tesla reports on Wednesday, January 28. The market demands a concrete roadmap detailing how management intends to reverse the sales decline and provide a specific timeline for expanding its robotaxi operations beyond the initial test areas. Core Business Under Unprecedented Pressure The hard numbers Tesla must detail this week paint a sobering picture. In 2025, the automaker delivered approximately 1.63 million vehicles globally, representing an 8.5% decline from the prior year. The weakness was particularly pronounced in the final quarter, where deliveries fell by 16% year-over-year, highlighting significant demand challenges. This downturn has had a symbolic consequence: Chinese automaker BYD has officially dethroned Tesla as the world’s largest seller of battery electric vehicles. With roughly 2.26 million battery-only vehicles sold in 2025, BYD underscores the immense competitive pressure Tesla now faces worldwide. The stock market has reflected these concerns, with shares losing nearly 18% over the past 30 days and opening the week at around 393 euros.