Tesla at $1 Trillion: Innovation Giant or Elon Musk’s Greatest Financial Illusion?

Tesla’s valuation hovering around the $1 trillion mark has Wall Street buzzing, but behind the scenes, cracks are widening. Profit margins are shrinking, global EV sales are plummeting, and Tesla’s U.S. market share has fallen from 78% to just 44% in three years. In Europe, things look even worse with a staggering 49% year-over-year drop in April sales. While competitors like BYD and legacy automakers expand, Tesla seems stuck, relying more on hype than performance.

Musk is now going all-in on futuristic promises: robotaxis and humanoid robots. The much-hyped robotaxi service, originally planned for June 2025 in Texas, is already facing regulatory hurdles and could be pushed back to September. Meanwhile, Waymo is running over 250,000 paid robotaxi rides per week, while Tesla’s autonomous tech remains unproven and under regulatory scrutiny. Investors are still clinging to the dream, but many analysts warn: without tangible results soon, this trillion-dollar story could unravel fast.