Tesla: Robotaxi Execution Likely To Disappoint

(9min)

Summary

  • Tesla, Inc. is finally close to launching a robotaxi service, apparently on June 12, but years of delays have left it lagging behind Waymo and other competitors.
  • The robotaxi market is not yet material to revenues, and Tesla's service launch appears rushed, with limited testing and regulatory preparation.
  • Tesla's current valuation of 11x sales already prices in robotaxi success, making the stock risky if the service under delivers or faces further delays.
  • Investors are likely to get a better entry point after the initial robotaxi hype fades, with TSLA stock up over $100 from the recent lows.
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After years of promises, Tesla, Inc. (NASDAQ:TSLA) (TSX:TSLA:CA) finally appears close to launching a robotaxi service. The EV company must execute on the robotaxi service, but the business is at a crossroads due to the failure

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