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Tesla (NasdaqGS:TSLA) is winding down production of its Model S and Model X vehicles to convert facilities for large scale Optimus humanoid robot manufacturing.
The company is publicly repositioning itself from a primarily electric vehicle maker to an AI and robotics focused business.
Speculation continues around a possible combination of Tesla, SpaceX, and xAI, which could reshape how these businesses operate and are funded.
For investors, this shift reframes Tesla from an auto manufacturer to a broader technology and automation platform. Humanoid robotics and AI remain early in commercial adoption, and Tesla is tying its identity and capital allocation more closely to those themes rather than to legacy premium EV models such as the Model S and Model X.
Key questions include how quickly Tesla can scale Optimus production, what real world use cases emerge, and whether any merger with SpaceX or xAI moves beyond speculation. These developments may influence how the market evaluates Tesla’s risk profile, revenue mix, and its role across mobility, robotics, and AI infrastructure.
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NasdaqGS:TSLA 1-Year Stock Price Chart
Why Tesla could be great value
⚖️ Price vs Analyst Target: At US$411.11, the share price sits about 2% below the US$418.81 analyst price target, which is within the 10% band.
❌ Simply Wall St Valuation: Tesla is described as trading at about 212.8% above estimated fair value, which flags a rich valuation.
❌ Recent Momentum: The 30 day return of roughly 4.7% decline shows recent softness in the share price as this new direction beds in.
Check out Simply Wall St’s in depth valuation analysis for Tesla.
📊 This news shifts the focus from premium EVs toward humanoid robotics and AI, so your thesis now rests more on those businesses than on legacy vehicle models.
📊 Watch how quickly Optimus production ramps, how it contributes to revenue alongside existing Auto operations, and how the market treats the high P/E of about 406.6.
⚠️ With three flagged minor risks, including shareholder dilution and lower profit margins than last year, execution risk around this new direction is a key issue to track.
For the full picture including more risks and rewards, check out the complete Tesla analysis.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include TSLA.
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