Oct. 10 looms on the horizon as a watershed moment in Tesla’s history. In a mere fortnight, investors will have a ringside view of what the future holds for Elon Musk’s electric vehicle (EV) kingdom. The gravity of the situation cannot be overstated; there is no room for slip-ups.
Let’s delve into why this event holds such colossal significance for Tesla.
The Game-Changing Event on Oct. 10
A multitude of automakers are delving into the realm of autonomous vehicles. Tesla, after years of toil, has crafted an autonomous driving platform named Full Self-Driving (FSD). Come Oct. 10, there is a tantalizing prospect of catching a glimpse of how this technology will navigate Tesla’s path forward.
This high-profile event, coined “We, Robot,” is a showcase of Tesla’s autonomous driving platform under monikers like “Robotaxi” and “Cybertaxi.”
Image source: Getty Images.
Significance of the Robotaxi Event for Tesla
What’s the hullabaloo about this event? Initially slated for August, the three-month postponement has raised the bar even higher in terms of expectations.
More importantly, this event marks a pivotal juncture in Tesla’s trajectory as investors might finally gain insights into the company’s artificial intelligence (AI) advancements.
Think of self-driving cars as mammoth computers steered by AI and robotics wizardry. FSD and Robotaxi are perceived as the cornerstone growth drivers capable of rekindling enthusiasm in Tesla’s EV lineup and paving the way for inroads into fresh domains like ride-hailing, car rentals, and logistics.
If the Robotaxi event falls short or hits an unexpected snag, skeptics will undoubtedly emerge, questioning Tesla’s capital expenditure (capex) and research and development (R&D) expenditures.
Investment Outlook: Hitting the Brakes or Accelerating?
Recalling an unfolded chapter from 2019 when Tesla’s unveiling of the Cybertruck SUV witnessed an unexpected glitch – Franz von Holzhausen’s ball shattering the “armor glass” windows. A mishap? Certainly. Catastrophic? Not really.
Despite initial setbacks with the Cybertruck, the delayed gratification seems justified. Despite being a newcomer, the Cybertruck is outselling electric pickup trucks from industry stalwarts like Ford and Rivian.
If the Robotaxi event hits a roadblock, it won’t be the death knell for Tesla. However, the Cybertruck fiasco and the Robotaxi revelation are apples and oranges.
While Tesla’s fate isn’t hinged on the Cybertruck, Musk envisages Tesla as a robotics enterprise. Failure to execute Robotaxi at scale would puncture the long-term growth narrative, raising doubts. Moreover, Tesla stock has surged by 22% in September.
Chasing momentum trades in anticipation of the event is fraught with risks. As a Tesla investor myself, I advocate for a cautious stance.
All eyes should be on the Robotaxi event to gauge what Musk and his team unveil. Post-event, as excitement ebbs, investors can seize opportunities to acquire Tesla shares at more realistic valuations when the company’s AI ambitions come to fruition.
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