Tesla shifts from EV crown toward promises about autonomy and robotics

Tesla's EV sales declined and BYD overtook it, while investors remain focused on the company's autonomy, AI and robotics promises despite limited detailed disclosure.

Tesla enters 2026 with a striking disconnect between its share price and its core vehicle business. Electric-vehicle deliveries declined in 2025, and China's BYD surpassed Tesla as the world's top EV seller. At the same time, investors appear focused on Tesla's future plans for autonomy, robots and AI, areas where the company provides mostly qualitative updates rather than consistent numeric reporting. Regulatory and legal developments related to Autopilot have added scrutiny as the company advances new services and products. Key points: - Tesla's EV deliveries fell in 2025 and BYD delivered more EVs globally and outsold Tesla in key European markets, according to industry registration data. - Tesla produced more vehicles than it sold in the October–December period for the fifth time in eight quarters, and reported about 70% capacity utilization across its EV lines in 2025; automotive gross profit fell while energy gross profit rose modestly through the first three quarters of 2025. - A California administrative court ordered a temporary suspension of Tesla EV sales and production after the state DMV alleged Autopilot marketing was misleading; the suspensions were delayed at the DMV's request and Tesla is appealing a related ruling in Florida. - The company emphasizes future offerings—robotaxi service in Austin, an April ramp for the two-seat Cybercab, and a planned Optimus v3 unveiling—yet detailed, regular metrics for autonomy, robotaxi operations and Optimus production remain limited. Summary: The situation leaves investors and observers weighing declining EV performance against ambitious, forward-looking promises in autonomy and robotics. Upcoming milestones include Tesla's fourth-quarter earnings release later this month and the one-year mark of its Austin robotaxi launch in June, while legal appeals and regulatory reviews remain active.