Tesla shares fall as US EV demand weakens, energy unit fuels growth outlook

Tesla's market value remains around $1.2 trillion, but its core auto sales have contracted, dropping 8% last year and about 1% in 2024. Despite the decline, investors have kept the stock buoyant, largely on expectations that artificial‑intelligence‑driven initiatives such as robotaxis could eventually create a $8‑10 trillion market. Analysts note that the company’s AI pivot has not yet translated into near‑term sales growth.

In 2026 the stock slipped more than 14% as U.S. EV demand cooled and regulatory scrutiny of autonomous‑driving technology intensified. European sales have begun to rebound, offering some offset. Meanwhile, Tesla’s energy division—especially battery‑storage solutions—is projected to generate $18.3 billion in revenue this year, riding a sector forecasted to grow about 22% annually through 2033. The shift mirrors strategic moves by other automakers toward diversification beyond vehicle sales.