Tesla Shifts Focus to AI, Robotics, Energy Storage as Core Profit Driver; TSLA

Tesla pivots from electric vehicles to prioritize autonomous driving, Optimus robots, and energy storage, with its Megapack business now generating 36 of 38 billion USD in 2025 net profit. Revenue fell 3% YoY to 94.8B USD—the first decline in 12 years. Megapack deployments surged 49% to 46.7 GWh, supporting 18M homes for one hour. The segment delivered 12.8B USD revenue at nearly 30% margin, becoming the world’s top grid-scale storage provider. Shanghai and Lathrop plants form dual-core manufacturing. Tesla plans a 50 GWh/year Megablock factory in Houston and will convert Fremont to robot production (1M units/year target). Analysts warn autonomy and robotics remain years from monetization. Morgan Stanley forecasts 64 GWh Megapack volume in 2026, but CFO flags margin pressure from tariffs and pricing wars.