Tesla's Automotive Revenue Fell 3%, and Energy Generation and Storage Tumbled 16%. Should Investors Still View Tesla as a Car Company?

Tesla reported declining automotive revenue (-3%) and energy storage revenue (-16%) in Q3 2026, with flat vehicle sales over three years. Despite being fundamentally a car company with 75% revenue from vehicles, Tesla trades at a P/E of 200 based on future promises around autonomous vehicles and the Optimus robot. Analysts argue the stock looks overvalued as the company must prove it can grow beyond its core auto business to justify its $1.5 trillion market cap.