Tesla’s Growth Story Facing Challenges Amidst Optimism for AI and Autonomy?

Tesla’s fourth-quarter earnings highlighted a company at the crossroads of transformation and challenge. Despite achieving a record market valuation of $1.5 trillion in December, the company’s core automotive business struggled, with an 8% year-over-year revenue decline. Demand softened, particularly for the Cybertruck, forcing Tesla to rely on aggressive promotional strategies to sustain sales. At the same time, its operating margin compressed to 6.2% from 8.2% a year prior, raising concerns about profitability.