2 Core Reasons Tesla Investors Should Be Getting Nervous

As Tesla celebrated its 10 millionth vehicle produced, the company is battling to reverse two consecutive years of annual delivery declines.

Tesla's robotaxi faces challenges in not only regulatory approvals, but catching rivals in true driverless miles.

An aging product lineup combined with intensifying global competition has pressured Tesla's margins.

Near the end of July, Tesla (NASDAQ: TSLA) achieved something no other automaker has done in history: It produced its 10 millionth full-electric vehicle (EV). It's a huge milestone and feels appropriate for the company that largely drove the global surge in EV investment. With that milestone comes the bittersweet truth that Tesla isn't quite the automaker most long-term investors signed up for.

Tesla's future is clearly driving toward a future of humanoid robots, robotaxis, and Artificial Intelligence (AI). While that could prove wildly lucrative for Tesla down the road, it also adds immense near-term uncertainty as it transitions. For investors considering jumping on board, here are two reasons buying Tesla should make you nervous.

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Morgan Stanley's Adam Jonas, a longtime Tesla bull and respected auto analyst, broke down Tesla's valuation and believes that roughly 34% of its total valuation is driven by its core automotive and energy business. In comparison, 41% is driven by the hype surrounding its robotaxi and autonomous driving technology. The last 25% is driven by the potential of its Optimus humanoid robot. Let's hit two of those segments and discuss why there are concerns.

While a big chunk of Tesla's valuation is driven by its robotaxi business , which doesn't really exist yet, the company finds itself trailing competitors in full-driverless miles (no supervisor) and in regulatory approvals. Alphabet 's Waymo has logged over 200 million fully autonomous, no-supervisor miles and generates roughly 500,000 weekly paid rides across major metropolitan areas, and Baidu has surpassed 137 million fully driverless miles.