In its Q1 earnings call held last night, Tesla reported a significant decline in profits, with a 55 percent drop compared to the previous quarter. The figures came as a surprise, surpassing the estimated 40 percent decrease predicted by analysts. However, CEO Elon Musk chose to shift the focus of the call towards Tesla's identity as an AI and robotics company, emphasizing that the company should not be viewed solely as a traditional automaker.

During the call, an analyst raised concerns about Chinese competitors catching up to Tesla's hardware capabilities. In response, Musk did not directly address the question but pointed out that Tesla's sales in China had not declined as much as some of its Chinese counterparts. He then declared that Tesla should be regarded primarily as an AI and robotics company, asserting that anyone who fails to recognize Tesla's potential in autonomy should not invest in the company.

Musk urged investors not to become overly fixated on short-term matters such as sales and profits. While acknowledging that competitors may produce superior vehicles and potentially gain market share, he highlighted that Tesla's core mission extends beyond manufacturing cars. Instead, Musk envisioned a future where Tesla's entire fleet becomes a sophisticated network of autonomous vehicles. Those who share this belief, he argued, are the ones who should invest in Tesla, while those with doubts should consider selling their shares.

Tesla's optimistic outlook amidst declining profits did not deter investors, as the stock surged by approximately 12 percent following the earnings call. This rally contradicted expectations of a potential sell-off from disillusioned investors.

The notion of Tesla as an AI and robotics company is not entirely new. In fact, in early 2018, the company claimed to be just months away from achieving coast-to-coast autonomous driving capabilities, despite missing its initial goal in 2017. With Tesla's continued emphasis on cutting-edge technology and automation, it is clear that Musk sees the company's potential beyond traditional automobile manufacturing.

As Tesla charts its course towards its AI and robotics future, investors are left to weigh the potential rewards against the uncertain reality of declining profits. Only time will tell if Musk's vision of a fully autonomous Tesla fleet becomes a reality, and if the company's stock success in 2023 reflects these ambitions.