From Nasdaq: 2024-08-03 05:53:00

Tesla (NASDAQ: TSLA) stock slumped in the first half of 2024 but surged after a strong Q2 deliveries report. Despite a 7% drop in automotive revenue, total revenue increased by 2%. Margins and adjusted net income fell, but investors are intrigued by Tesla’s potential in AI.

Elon Musk emphasized autonomy as Tesla’s key differentiator on the earnings call. While Tesla’s AI potential is drawing interest, Alphabet’s Waymo is considered the autonomous vehicle leader. Waymo’s deployment of driverless vehicles and success in the industry make Alphabet a potential better investment than Tesla.

Alphabet’s Waymo has logged over 20 million autonomous miles and provides 50,000 paid rides per week. Despite Waymo’s leading position in AV technology, investors are more focused on Alphabet’s other businesses. Waymo could impact Alphabet’s finances significantly if robotaxis become a major business for the company.

Tesla trades at a higher P/E ratio and flat revenue growth, valued for future innovations. On the other hand, Alphabet trades at a lower P/E ratio with revenue and profit growth. If you believe in self-driving potential, buying Alphabet stock may be a better choice than Tesla at its current valuation.

Consider investing in the 10 best stocks as per the Motley Fool Stock Advisor team’s recommendation for potential high returns. Alphabet was not on the list, but history shows investing in recommended stocks like Nvidia in 2005 could lead to significant gains. The Stock Advisor service offers guidance, portfolio building tips, and new stock picks monthly, outperforming the S&P 500 since 2002.



Read more at Nasdaq: Like Tesla? You’ll Love This AI Autonomy Stock