Top Investing Today
  • Investing
  • Politics
  • Stock
  • Economy
  • Editor’s Pick
  • Investing
  • Politics
  • Stock
  • Economy
  • Editor’s Pick
No Result
View All Result
Top Investing Today
No Result
View All Result
Home Editor's Pick

Tesla tanks on Robotaxi delay

BoldThemes by BoldThemes
July 11, 2024
in Editor's Pick
0
Tesla tanks on Robotaxi delay
0
SHARES
6
VIEWS
Share on FacebookShare on Twitter
tesla stock

Tesla shares are tanking after recording 10 straight sessions of gains. The EV maker will have to cancel its August Robotaxi event as per people familiar with the company’s decision.

The main reason for the cancellation is supposedly a design rework on some elements of the car. But no one at Tesla has yet confirmed it.

This comes as a shock, and that is reflected in the share price which is trading down 6%. Traders were hoping for an extended rally leading into the event but now have to deal with the aftermath of the announcement.

The market reaction isn’t something Tesla traders are unfamiliar with. Elon Musk’s antics have caused similar stock movements in the past.

A brief history

The Robotaxi event had an eerie unpredictability surrounding it. If you asked a Tesla shareholder if he’s surprised by the announcement, the answer will probably be in the negative.

You see, Tesla’s event aren’t always as organised as other tech companies. And the Robotaxi event really takes the cake in that regard.

In April this year, there were rumours that Tesla had completely abandoned its low-cost car plan. Musk then clarified that the low-cost car would be the Robotaxi that will run on its Full Self Driving (FSD) software.

He then announced an August launch date, which in hindsight was clearly a hasty move. It did help the company back then but has come back to bite them now as share price keeps falling.

While the knee jerk reaction will clearly be negative on a delay of August 8th based on this report that just hit, we believe the timing of robotaxis, partnerships, and the ultimate autonomous and AI driven technology does not change at all for our bullish Tesla thesis

Daniel Ives, Wedbush Securities

Why is the Robotaxi important?

The Robotaxi is a part of Tesla initiative to shift from mainly a car maker to an AI company. Its AI plans include autonomous driving, Robotaxis, and its humanoid robot called Optimus.

The above plans are part of a strategy to counter the slowdown in EV sales. Tesla is unique in the sense that it has a lot of other projects to focus on even if the sales slowdown.

Tesla already has enough vehicles on the road to get meaningful help in the form of data for training its FSD software. It is way ahead of other EV companies in that regard. So an industry wide slowdown hurts other companies way more than it hurts Tesla.

The current announcement is only a small setback for Tesla and the negative reaction is likely to be short lived. If any company is going crack FSD, it has to be Tesla. Long-term shareholders will hardly be bothered by this. They’d rather the company takes its time and gets it right.

The post Tesla tanks on Robotaxi delay appeared first on Invezz

Previous Post

Bain Capital to acquire Envestnet in $4.5 billion deal backed by BlackRock and Fidelity

Next Post

Lucid Group stock analysis: how high can LCID reach?

BoldThemes

BoldThemes

Next Post
Lucid Group stock analysis: how high can LCID reach?

Lucid Group stock analysis: how high can LCID reach?

  • Trending
  • Comments
  • Latest
The Connectivity Standards Alliance Product Security Working Group Launches the IoT Device Security Specification 1.0

The Connectivity Standards Alliance Product Security Working Group Launches the IoT Device Security Specification 1.0

March 19, 2024
Israel says UN ‘deceiving’ world over aid delays to Gaza

Israel says UN ‘deceiving’ world over aid delays to Gaza

March 28, 2024
Conservative backlash to Israel aid bill could force Johnson to seek Democrat support again

Conservative backlash to Israel aid bill could force Johnson to seek Democrat support again

February 6, 2024
Gold and Silver Set to Smash Records: Could 2024 Be Their Biggest Year Yet?

Gold and Silver Set to Smash Records: Could 2024 Be Their Biggest Year Yet?

May 17, 2024

Trump denounces court’s ‘political’ tariff decision, calls on Supreme Court to act quickly

0
Amid growing criticism of Biden foreign policy, experts credit wins while leaving room for improvement

Amid growing criticism of Biden foreign policy, experts credit wins while leaving room for improvement

0
Conservative backlash to Israel aid bill could force Johnson to seek Democrat support again

Conservative backlash to Israel aid bill could force Johnson to seek Democrat support again

0
Precision Manufacturing For Sensitive Equipment With CNC Machining

Precision Manufacturing For Sensitive Equipment With CNC Machining

0

Trump denounces court’s ‘political’ tariff decision, calls on Supreme Court to act quickly

May 30, 2025

President Trump teases ‘last day, but not really’ for Elon Musk at DOGE: Oval Office presser set for Friday

May 30, 2025

State Dept says DOGE’s changes will be permanent amid Musk’s departure

May 30, 2025

DOGE staffing shakeup as Elon Musk hangs up his hat, White House confirms

May 29, 2025
Enter Your Information Below To Receive Trading Ideas and Latest News

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    Recent News

    Trump denounces court’s ‘political’ tariff decision, calls on Supreme Court to act quickly

    May 30, 2025

    President Trump teases ‘last day, but not really’ for Elon Musk at DOGE: Oval Office presser set for Friday

    May 30, 2025

    State Dept says DOGE’s changes will be permanent amid Musk’s departure

    May 30, 2025

    DOGE staffing shakeup as Elon Musk hangs up his hat, White House confirms

    May 29, 2025
    • About Us
    • Privacy Policy
    • Terms & Conditions
    • Contact

    Copyright © 2024 Topinvestingtoday.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Politics
    • Stock
    • Economy
    • Editor’s Pick

    Copyright © 2024 Topinvestingtoday.com. All Rights Reserved.