Tesla Is Creating Multiple Emerging Businesses Simultaneously
Contributed Opinion

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Tesla Inc. (TSLA:NASDAQ) is among the most remarkable organizations ever established, and it continues to become increasingly fascinating with each passing year. Certainly, the enterprise manufactures EVs. However, what's genuinely developing is the globe's premier platform for practical artificial intelligence to drive autonomous automobiles and humanlike robots. Combine that with unparalleled manufacturing capabilities and a rapidly expanding energy storage operation, and you have a company ideally positioned for the most significant upcoming transformations in transportation, labor, and renewable energy. The stock has experienced a challenging beginning to 2026, declining approximately 23% year-to-date. I (Chris Wood) attribute this to several factors:

• The NHTSA's investigation into Tesla's FSD system was elevated to an official Engineering Analysis.
• Electric vehicle delivery growth has been sluggish.
• Widespread macroeconomic concerns in the market. But none of it alters what Tesla is assembling.

Meanwhile, the underlying financial picture amidst all the commotion is promising. In Q4 2025, Tesla managed to boost its gross profit margin above 20% for the first time since Q4 2022. For the entirety of 2025, its energy storage division—sizable Megapack batteries and residential Powerwalls—generated nearly $12.8 billion in revenue, signifying year-over-year growth of 27%, with a gross profit margin of roughly 30%.

That's more lucrative than the EV business. And headway persists on the autonomy front. Tesla commenced offering paid robotaxi rides in Austin (at last) without a safety driver or a trailing chase vehicle.

Authentic customers are climbing in, and the vehicles handle everything autonomously. Full Self-Driving (FSD) software continues to advance with each update, and over a million individuals now pay for it. The most exciting developments at Tesla right now have almost nothing to do with traditional EV sales. Musk stated that Tesla's robotaxi fleet is now on an "exponential curve," potentially doubling every month. Production of the Cybercab—a straightforward, two-seat robotaxi lacking a steering wheel or pedals—is slated to commence in April.

Then there are the Optimus humanoid robots.

They're still in the early stages but already performing basic factory tasks. Tesla is gearing up to introduce the next iteration, dubbed Gen 3—which Musk said is so lifelike that people could mistake it for a human—in a few months by converting its entire Model S and X production line in Fremont into an Optimus factory, with an ultimate aim of producing 1 million robots annually from that facility alone.

And recently, Musk unveiled the TeraFab: a colossal joint venture between Tesla and SpaceX to manufacture chips at a scale the industry has never come close to witnessing—securing Tesla's chip supply for decades of robotaxi and Optimus growth.

With a track record of turning game-changing ideas into real products like no one else, I believe Tesla's advantages are getting stronger—not weaker.

The stock is likely to remain volatile because the company is building several future businesses at once.

If you enjoyed this, stay tuned… I'll have much more to say about Elon and his companies soon. And if you missed my piece on SpaceX, read it here.

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