Tesla's Autopilot Strategy Rebuild: From Car Manufacturer to AI Robot Company

If you’re still evaluating Tesla based on traditional vehicle delivery figures, that logic is already outdated. As autonomous driving and humanoid robots become strategic priorities, Tesla is fundamentally rewriting analyst valuation models. Elon Musk’s recent series of actions indicates that the company no longer sees itself as a traditional automaker but is aiming for a more visionary future.

According to Tesla’s latest financial report, Q4 deliveries declined by 16%. But during the subsequent earnings call, Musk appeared completely unfazed. His focus has shifted entirely—shutting down Model S and Model X to free up capacity for humanoid robots, heavily investing in autonomous driving chip development, and even changing the company’s mission statement to “Realize a prosperous future.” Behind these decisions is a redefinition of the company’s future growth engines.

Musk’s Bold Product Line Reshuffle: Discontinuing Classic Models to Invest in Autonomous Driving

Tesla’s scale of product restructuring has exceeded market expectations. The Model S and Model X, once flagship products, have been outright discontinued, with factory capacity fully redirected toward the production of Optimus humanoid robots. This isn’t just a product update; it’s a complete overhaul of the business model.

In the earnings call, Musk emphasized that the company is no longer focused on the traditional vehicle ownership model but is shifting its focus to autonomous driving technology, manufacturing, and software development. Remaining capacity may be used for semi-truck production and a limited number of Roadster sports cars, but large-scale EV delivery plans are essentially over. The message is clear: Tesla’s growth story has been rewritten.

Optimus Robots and TerraFab Chips: A $25 Billion Annual Ambition

William Blair analyst Jed Dorsheimer performed an interesting calculation. If Tesla produces 500,000 Optimus robots annually at $50,000 each, that would generate $25 billion in revenue per year. This isn’t a distant dream—Optimus V3 is scheduled for launch in 2025, with production planned to start in 2027, involving real products, real numbers, and real investments.

In the chip domain, Tesla is playing a high-stakes game. Its self-developed TerraFab chip manufacturing platform will involve hundreds of billions of dollars to achieve full autonomy over autonomous driving systems, robot control, and AI computing. This is no longer about simply sourcing third-party chips; it’s about controlling the entire hardware-to-software ecosystem. This is crucial for building a complete autonomous driving ecosystem.

Wall Street Reassesses: 196x P/E Reflects a New Market Perception

The market has already priced in this strategic shift. Tesla’s current forward P/E ratio is as high as 196, while General Motors and Ford are in the single digits. Behind this number lies a core consensus: Wall Street no longer compares Tesla to traditional automakers.

This valuation gap says it all. Investors are paying for a completely new Tesla—a tech company integrating autonomous driving, humanoid robots, and chip manufacturing—rather than a conventional EV manufacturer. The key point is that this isn’t just a change in analyst opinions; it’s a market vote with real capital.

Tesla’s strategic pivot marks a profound transformation in valuation methods. When autonomous driving and AI become dominant, traditional vehicle sales metrics lose their explanatory power. Whether these ambitions can be realized will determine Tesla’s true value in the AI and robotics era.