Tesla shares have fallen 26% year to date in 2026, trailing every Magnificent Seven peer as vehicle sales stall and profit margins compress. The company's operating margin over the last 12 months is 4.6%, down from a historical peak above 15%, while it plans a record $25 billion in capital expenditures this year, roughly double the prior 12 months. Tesla is pivoting toward AI products including the Cybercab self-driving taxi, full self-driving software with 1.48 million active subscriptions growing 56% year over year, and the Optimus humanoid robot. During the most recent earnings call, CEO Elon Musk responded to a Wells Fargo analyst's question about a potential merger with SpaceX by saying he couldn't speculate but noted growing overlap between the two businesses.
