Tesla's stock price fell 12% on Wednesday, evaporating nearly $100 billion in market value, as CEO Elon Musk's promises about humanoid robots and autonomous taxis failed to appease investors concerned about the company's declining profit margins.

Tesla announced its lowest quarterly profit margin in the past five years on Tuesday evening, with earnings per share falling below market expectations for the fourth consecutive quarter.

This is the largest single day decline in Tesla's stock price since 2020, which has compressed Tesla's market value to nearly $700 billion, a significant decrease from its $1 trillion market value in 2021.

Nevertheless, Tesla remains the world's most valuable automaker, with its stock price based on investors' high profit expectations for future products such as robot taxis and robots that have not yet been launched.

Jeff Osborne from TD Cowen said, "All of Musk's enthusiasm during the conference call, except for (energy) storage, was about non-existent products.

Tesla's disappointing financial report, combined with Google's parent company Alphabet's report showing increased capital expenditures, has led to a volatile start to Wall Street's most valuable company's second quarter earnings expectations.

The stock price of Alphabet plummeted by about 5%, and the decline in the stock prices of Tesla and Alphabet triggered a severe sell-off on Wall Street, raising concerns among investors about overvalued companies.

Tesla's electric vehicle deliveries have declined for two consecutive quarters, and the company has yet to produce the low-cost models expected by the public, leading buyers to turn to other electric vehicle manufacturers. For example, BYD from China surpassed Tesla in sales in Singapore in the first half of 2024.

Tesla was forced to lower prices and increase incentives to drive sales of its older models. Musk said that competitors "have significantly reduced the price of electric vehicles, which makes Tesla face more challenges."

The company stated that the cost savings brought by the low-priced model planned to be released in the first half of 2025 will be lower than previously estimated, and the highly anticipated release of the robot taxi will be postponed to October.

UBS analyst Joseph Spak stated, "Tesla's pricing is based on autonomous driving and artificial intelligence, rather than the car itself... We believe that any returns from Tesla's AI efforts will take longer to materialize." He reiterated his "sell" rating on Tesla's stock.