<div id="readability-page-1"><figure><img width="1600" height="805" src="https://imageproxy.pbkrs.com/https://electrek.co/wp-content/uploads/sites/3/2025/12/Tesla-patent-application-analysis-featured-image.png/query-dz0xNjAw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://electrek.co/wp-content/uploads/sites/3/2025/12/Tesla-patent-application-analysis-featured-image.png/query-dz0xNjAw"/></figure>An analysis of Tesla’s patent applications shows a slower pace of innovation in the last 2 years and a shift toward AI hardware and software as Elon Musk is betting the house on autonomous driving and robots.We have long debated whether Tesla (TSLA) should be valued as an automotive manufacturer or a technology company. While bears point to declining car deliveries and margins, bulls point to autonomous driving and robots as the next phase of growth.The bears are right. Car sales still account for the majority of Tesla’s revenue and profits, and they have been steadily declining over the past 2 years. A bullish future in which Tesla’s AI bets replace its declining auto business remains hypothetical, but there is at least some data supporting Tesla’s investments in this shift.</div>

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Tesla's recent patent applications indicate a slowdown in innovation over the past two years, with a strategic shift towards AI and autonomous driving technologies. This move aligns with Elon Musk's focus on autonomous driving and robotics as future growth areas, despite current declines in car sales and margins. The debate continues on whether Tesla should be valued as an automotive or technology company, with its AI investments seen as a potential future growth driver.

- Tesla’s recent patent applications indicate a slowdown in innovation and a pivot towards AI hardware and software.  
- Despite ongoing debates about Tesla being valued as an automotive manufacturer or a technology firm, the company faces declining car sales, which are essential for its revenue.  
- The potential success of Tesla's AI initiatives in replacing its dwindling auto business remains uncertain, although some data suggests progress in this transition.

Electrek

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Tesla’s patent applications show slower innovation and shift to AI/autonomous driving