Robotaxi Sunday Foreshadows Tesla's Next Big Thing - Buy Call

Summary

• Tesla, Inc. delivered on its promise from last decade to bring Robotaxis to the streets, launching a 10-vehicle trial on Sunday that impressed investors enough for a 10% stock boost Monday.
• The trail seems more like a glorified Model Y with FSD, and a lot of information remains missing, but we do think it is a step in the right direction.
• This will all come down to Tesla's ability to scale, which requires passing safety requirements which as of now lack sufficient sensors.
• Tesla has a tough task to catch up to Waymo, the first-mover, which is already ramping 2,000 above its 1,500 vehicles in operation.
• We think TSLA stock is a longer term buy as investor confidence is reignited after the stock underperformed S&P 500 YTD.
• This idea was discussed in more depth with members of my private investing community, Tech Contrarians. Learn More »

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.