# Tesla's Car Business Lags

> Tesla's car division is losing ground as CEO focuses on robotaxis and AI.
- Title: Tesla's Car Business Lags · 24/7 Wall St. | Shortify
- Summary: Tesla's car division is losing ground as CEO focuses on robotaxis and AI. Tesla's car business is declining while the company emphasizes robotaxis and AI.
- Keywords: tesla, elon musk, robotaxis, car business, ev market, tesla stock, Tesla's, Car, Business, Lags, 24/7 Wall St.
- Source: 24/7 Wall St. — https://247wallst.com/investing/2026/10/22/tesla-is-just-a-car-company
- Author: Douglas A. McIntyre
- Published: 2026-10-22T15:51:00+00:00
- Read time: 1 min
- Topics: tesla, elon musk, robotaxis, ai, car business, ev market, tesla stock
## Tesla Earnings Call Focus
Elon Musk spent Tesla's earnings call talking about robotaxis, AI, and humanoid robots while glossing over a car business that is losing ground in the world's largest EV market.
## Tesla's Stock Performance
Tesla's stock is down 14% this year while the S&P 500 is up 13%.
## Tesla Revenue and Profit
Tesla reported $28 billion revenue, flat from a year ago, with net income falling from $1.4 billion to $800 million.
## Car Deliveries and Market Share
Car deliveries were flat at 486,532 units, with 74% of revenue from auto business and 10% from energy generation.
## Robotaxi and AI Challenges
Musk said robotaxi business is promising but not approved for driverless operation anywhere in the world.
## Optimus Robot Status
Musk stated there is 'still quite a lot of work to do with regard to the AI and the robot for it to be truly useful for open-ended tasks'.
## Potential Tesla-SpaceX Merger
Tesla's prospects could be saved by a merger with Musk-controlled SpaceX if shareholders get a strong valuation.
## Key takeaway

Tesla's car business is declining while the company emphasizes robotaxis and AI.