Tesla's Robotaxi Launch Is Days Away -- And the Stock Market Smell Blood or Brilliance
For those with a shorter time horizon, it's a textbook profit-taking setup. Tesla has already surged 33% since its April 22 earnings, and Zacks strategist Andrew Rocco, who holds the stock in the Technology Innovators Portfolio, thinks traders might want to lock in gains before any post-launch noise hits. But longer-term investors are watching for something bigger. People are starting to price in robotaxi, Rocco said. The thesis? Tesla has been quietly laying the groundwork for scalemost Model 3 and Model Y cars sold in recent years could become robotaxis with software updates. That gives Tesla a shot at catching up to Waymo, which currently handles over 250,000 autonomous rides weekly using just 1,500 vehicles.
Still, this isn't a done deal. Bulls are betting the launch will validate Tesla's AI strategy and unlock a high-margin business model built on autonomous networks. Bears, on the other hand, aren't buying the hypenot yet. They're focused on sagging car sales and the regulatory uncertainties ahead. The launch might turn into a milestone momentor a speed bump. But one thing's for sure: how Tesla handles the next few weeks could reshape how the market values its future.
This article first appeared on GuruFocus.
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