Hello, Reader.
Being first doesn’t mean you end up being the best.
Take Kodak, which invented digital cameras but refused to pivot from its film business.
Sony Group Co. (SONY) ended up seizing the opportunity and kicked Kodak to the curb.
Then there’s MySpace, one of the first social networking sites to achieve mainstream success, until Meta Platform Inc.’s (META) Facebook rolled around with a cleaner, smarter model, completely redefining social media.
Now, we see this happening with Tesla Inc. (TSLA).
It was the first to popularize electric vehicles – love him or hate him, Elon Musk made EVs cool and desirable – but his company is currently in a vulnerable position and facing serious headwinds that go beyond typical corporate bumps in the road.
Its recent second-quarter earnings report confirms Tesla’s dominance isn’t guaranteed.
Musk is learning that in this “Age of Chaos” that we find ourselves in, disruption is quick… competition is cutthroat… and yesterday’s innovators could become swallowed overnight.
So, in today’s Smart Money, we’ll take a look at Tesla’s second-quarter earnings, and I’ll walk you through the company’s various missteps.
Then, I’ll share the name of a company that is gaining on Tesla…
And show you how to access even more “Sell This, Buy That” recommendations to help protect yourself as Tesla and other companies find themselves falling behind.
Let’s dive in…
Tesla Misses the Mark
After Elon Musk began to fund, and then endorse, President Donald Trump’s return to office a little more than a year ago, it’s been anything but smooth sailing for Tesla.
We couldn’t escape the headlines…
“Elon Musk says his DOGE role is hurting Tesla’s stock price, calling it ‘a very expensive job’” from CBS News in March.
And…
“As Tesla profits plunge 71%, Elon Musk says he’ll spend less time on DOGE” from NPR in April.
Then, at the end of May, Musk left the Department of Government Efficiency (DOGE) when his 130-day tenure was up.
But in the larger picture, Musk’s political stunts were only a blip on the radar when you dig into the much bigger problems Tesla is facing.
Shares of the EV maker fell 8% after it announced on Wednesday that it missed both top and bottom lines for the second quarter of 2025. Earnings of $0.40 per share fell 30% year-over-year from $0.52. And revenue fell 12% to $22.5 billion, from $25.5 billion in the same quarter last year.
This decline is largely due to declining vehicle sales. Tesla reported a 13.5% decrease in global vehicle deliveries for the second quarter.
We can see that Tesla is getting crushed around the world by Chinese competitors, like BYD Co. Ltd. (BYDDF), that produce more affordable EVs.
BYD is beating Tesla at its own game. It sold more than 416,000 EVs globally in the first quarter, compared to Tesla’s 336,000 vehicles sold in the same period. BYD is making more cars and more money – all while selling its vehicles for just over $10,000. That is one-third of what the cheapest Tesla costs.
And Musk can’t depend on Tesla’s Optimus humanoid robots to save his company. Tesla has yet to find formal commitments from large companies wanting to purchase Optimus robots.
Just yesterday, The Information reported that Tesla is well behind the pace needed to meet its stated goal of producing at least 5,000 Optimus robots this year. So far, the company has only produced a few hundred.
I find this news unsurprising, as I have long had Tesla on my “Sell” list.
In 2016, when the company unveiled its Model 3 to a flurry of pre-orders and excitement, I sold the EV-maker. Instead, I looked in a different direction and bought Teck Resources Ltd. (TECK), a Canadian mining company.
Over the next 10 months, Tesla fell 9%, while Teck soared a whopping 745%.
And now I’m making the same call again: Tesla does not belong in your portfolio.
But this time, I’m not looking in the opposite direction.
Instead, I’m looking at a direct competitor to Optimus…
Move Over, Tesla
Specifically, I’ve identified a robotics company that uses AI software to control robots that are tailor-made for warehouses and distribution centers.
This company’s robots are designed for specific tasks within the warehouse environment, emphasizing speed, accuracy, and efficiency in handling goods. These robots travel 5X faster than Optimus and can carry several hundred more pounds.
So, while Tesla is lagging behind in building robots for the future, this company is already printing money with robots today.
Its revenue has spiked 15-fold – from just $100 million in 2019 to over $1.5 billion today. Its current backlog means there’s another $23 billion in future sales already baked in the cake.
You can learn the name of this company – for free – right now.
I’ve put all of this company’s information in my new Sell This, Buy That presentation.
What’s more, in this special free broadcast, you’ll also learn how to access my brand-new report, Sell This, Buy That: The $24 Trillion Rise of Robotics. This report details three more companies set to capitalize on the $24-trillion robotics industry.
So long, Optimus.
The bottom line is that, even though their names may be flashy and well-known, you don’t have to be stuck with losers like Tesla.
That is why I am sharing the names and tickers of several solid companies that could multiply your money in the coming months.
Click here to watch my special broadcast now.
Regards,
Eric Fry
Editor, Smart Money
