BYD has overtaken Tesla as the world's biggest seller of electric vehicles. How can Tesla's PE ratio of ~290 be justified

[Tesla has fallen behind BYD in terms of vehicle sales. Not to worry because Tesla is a AI & Robotics company – Decoding The Everything](https://decodingtheeverything.wordpress.com/2026/01/28/tesla-has-fallen-behind-byd-in-terms-of-vehicle-sales-not-to-worry-because-tesla-is-a-ai-robotics-company/)

As you can see from the title, BYD overtook Tesla.

Tesla bulls justify this by saying that Tesla is more than an EV company. It’s transitioning to an AI and robotics company

But the bulk of Tesla’s income comes from its EV business. For instance, Tesla generated $28 billion in revenue in the third quarter, of which $21.2 billion came from selling EVs.

Again, I understand that this is simply a snapshot of the present, not what’s to come in the future.

Tesla has a data advantage for self-driving cars. But they do not have this advantage for Robotics. But the entire thesis/argument is about Tesla transitioning to AI and Robotics, but how are they expected to crack Robotics if they do not have the data advantage for Robotics i.e. they do not have any advantage over other Robot companies.

Now, if you say that, Robots can be trained in virtual/ simulated worlds, then my response is “If robots can be trained on simulated/ virtual worlds, then self-driving can also be trained in the same manner”. So, Tesla’s data advantage is not a good thesis.

So, either:

1. Tesla has a data advantage for self-driving car, in which case Tesla does not have a data advantage for humanoid robots (unless they have been collecting humanoid robot centric data for the last decade unknown to public knowledge). This means that Tesla will dominate autonomous driving, but there will be aggressive competition for autonomous humanoid robots, with no guarantee that Tesla’s Optimus will come out on top.

OR

1. Humanoid robots can be trained in simulated virtual worlds, in which case self-driving cars can also be trained in a similar manner in theory. In this case Tesla does not have the data advantage.