Should investors sell immediately? Or is it worth buying Tesla? The picture for earnings is considerably more severe. Net profit imploded by nearly 46 percent to $3.8 billion. This dramatic decline is primarily rooted in the core automotive segment. Revenue from vehicle sales contracted by roughly 10 percent, as global deliveries fell 9 percent year-over-year to 1.6 million units. The sole bright spot was the energy division, which expanded by 27 percent and provided a partial cushion against the broader downturn. Betting the Future on Autonomous Technology Confronted by a deteriorating core business, Tesla’s leadership is executing a radical strategic shift. The company aims to commence production of its “Cybercab” robotaxi within the current year. Concurrently, market speculation persists regarding a potential structural integration of Tesla with Elon Musk’s other ventures, including SpaceX and xAI. Officially, however, corporate focus remains fixed on scaling AI infrastructure and developing humanoid robots. This complex backdrop has weighed heavily on the equity. Tesla shares have reacted with significant losses, currently trading around $406. This price reflects a decline of over 17 percent from the 52-week high. With management forecasting increased expenditures to fund its AI initiatives, pressure on the company’s margins is expected to remain intense. The future trajectory of the stock now appears fundamentally tied to a critical question: can the nascent autonomous technology scale with sufficient speed to offset the accelerating erosion in the traditional vehicle business? Ad