Tesla stock is volatile after a 40% drop, future hinges on robotaxi showcase

From Nasdaq: 2024-08-10 16:11:00

Tesla (NASDAQ: TSLA) stock has been volatile this year, down 20% year-to-date after a 40% drop. The key to its future lies in showcasing a robotaxi with full self-driving capabilities, which could be a game changer. However, poor earnings numbers and increasing competition pose challenges for the company.

With revenue up just 2%, Tesla’s net income fell 45% in the second quarter. Operating expenses are rising, and margins are shrinking. The pressure is on Tesla to prove its self-driving technology advancements to justify its premium valuation. The delayed robotaxi event in October will be crucial for the company’s future.

Given the uncertainties facing Tesla, including economic conditions and CEO Elon Musk’s high expectations, caution is advised for investors. The Motley Fool’s Stock Advisor did not select Tesla among its 10 best stocks to buy now, suggesting potential for better returns elsewhere. With multiple challenges ahead, waiting and watching may be the best strategy for now.



Read more at Nasdaq: This Could Make or Break Tesla Stock This Year