From Nasdaq: 2024-05-21 22:50:20

Tesla’s announcement of a Robotaxi is seen as a distraction amid declining vehicle sales, falling margins, and high valuation. Q1 saw Tesla’s worst revenue decline since 2012, with net income dropping 55%. Musk blames unforeseen challenges for performance and touts AI potential, but free cash flow turned negative in Q1 due to increased inventory and AI spending.

The push towards AI and Robotaxi technology could open up new revenue streams for Tesla, similar to Amazon Web Services. However, Musk’s history of overpromising and underdelivering, coupled with Tesla’s high valuation, keep some investors bearish. Analysts rate Tesla as a Hold, with a $174.60 price target, anticipating downside potential.

While the potential of autonomous vehicles is promising for Tesla, doubts about concrete breakthroughs remain. The focus on August 8 for more details on autonomous technology could keep Tesla stock in a holding pattern. Despite the potential of new revenue streams from AI, the high forward earnings ratio and skepticism about growth prospects make some investors cautious about buying into Tesla.



Read more at Nasdaq: Will Tesla Stock (NASDAQ:TSLA) Tread Water Until the Robotaxi Unveiling?