Tesla: No Longer Just An Automotive Company But An AI Leader (Rating Upgrade)

Summary

  • Tesla's valuation is now primarily driven by its robotaxi and humanoid robotics ambitions, not near-term automotive delivery growth/decline.
  • Despite recent deliveries disappointment and renewed political fallout with Trump, investor sentiment has remained remarkably robust.
  • The market is starting to price in significant operating income potential from robotaxi deployment, with a medium-term outlook in the next five years.
  • Tesla investors are starting to take its AI ambitions (robotics and autonomy) very seriously, suggesting automotive hiccups could become less market-moving going ahead.
  • As we move into the next pivotal growth stage underpinning Tesla's growth prospects, I lay out clearly why it's time to return to the bullish camp.
  • Looking for a helping hand in the market? Members of Ultimate Growth Investing get exclusive ideas and guidance to navigate any climate. Learn More »

tesla model y midnight cherry red, gigafactory berlin brandenburg grünheide, location in Europe, our most advanced, sustainable and efficient facility yet in Berlin, Germany - February 19, 2024

Victor Golmer

Tesla: Decline In Deliveries May No Longer Have The Same Adverse Impact

It seems like I can never escape "unscathed" from a day without reading about the updates about Tesla (TSLA) CEO Elon Musk. The media "darling" seems

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  • We called the TSLA top in late 2021.
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  • We told members that the S&P 500 likely bottomed in October 2022.
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This article was written by

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JR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP.

He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks.

He focuses on identifying growth investing opportunities that present the most attractive risk/reward upside potential. His approach combines sharp price action analysis with fundamentals investing.

He tends to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities.

He runs the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. He focuses on ideas that has strong growth potential and well-beaten contrarian plays, with an 18 to 24 month outlook for the thesis to play out.

The group is designed for investors seeking to capitalize on growth stocks with robust fundamentals, buying momentum, and turnaround plays at highly attractive valuations.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of GOOGL either through stock ownership, options, or other derivatives. 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.

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