Although Toyota sold 11.32 million vehicles in 2025—far surpassing Tesla’s 1.64 million—Tesla’s market capitalization stands at a staggering $1.58 trillion, more than four times that of Toyota. A Morgan Stanley breakdown reveals that Tesla’s current automotive business accounts for only 13% of its valuation. The real drivers behind its lofty market cap are three future “AI aces”: Full Self-Driving (FSD) software (34%), Robotaxi (29%), and the humanoid robot Optimus (14%). FSD is expected to generate high-margin recurring revenue through software subscriptions, while Robotaxi—leveraging a vision-only approach—aims to disrupt the mobility market by significantly lowering costs. Optimus, meanwhile, is viewed as a long-term growth engine. Wall Street isn’t betting on the cars Tesla sells today, but rather placing its trust in the company’s AI- and robotics-driven future. However, if technological deployment or regulatory hurdles arise, this high valuation could face downward pressure.