Latest news with #Dojo
Yahoo
5 days ago
- Automotive
- Yahoo
Tesla Just Applied to Launch Robotaxis in Phoenix. Does That Strengthen the TSLA Stock Bull Case?
The last time I wrote about Tesla (TSLA), the electric automaker was finally ready to launch its robotaxi service in Austin. In the month since, a lot has happened in the world of Tesla and its CEO Elon Musk Then, the stock is down about 8% over that period, Musk has launched his own political party, told one of the biggest Tesla bulls to 'shut up' when he proposed some changes to the board, reported a sequential rise but yearly drop in vehicle deliveries, and opened its first showroom in India. Palantir Just Launched Warp Speed for Warships. Does That Make PLTR Stock a Buy? This Analyst Just Doubled His Price Target on AMD Stock How High Can Nvidia Stock Go as Jensen Huang Heads to China? Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! True to its character, Tesla has not stayed out of the headlines. And it looks like it will stay that way with the Elon Musk-led company looking to commence its robotaxi services in Phoenix, Arizona. With its Google (GOOGL)-backed rival Waymo already operating in the city, some analysts believe that Tesla's robotaxi expansion here is a positive development. So, as investors, is this the right time to invest in Tesla stock, which is already down about 23% on a YTD basis, or is now the time for caution? Let's find out. Investors with a long-term view should avoid all the noise around Tesla stock because the future of Tesla includes exciting bets such as full self-driving (FSD), Optimus humanoid robots, the Dojo supercomputer, and AI initiatives such as Grok 4. In terms of autonomy and FSD capabilities, Tesla stands apart largely due to its tightly controlled operations across every layer of development and deployment. What differentiates the company is its extensive vertical integration. While the likes of Waymo tend to rely on outside vendors and fragmented systems, Tesla operates differently. It designs its own AI chips and FSD software, produces its battery technology, and oversees its global network of charging infrastructure. This integrated approach results in greater design speed, stronger operating leverage, and enhanced scalability. The company's reliance on camera-based Tesla Vision lowers vehicle production costs to approximately $30,000, a sharp contrast to the estimated $100,000 required for vehicles equipped with LiDAR sensors. Though questions persist over safety trade-offs, the cost advantage remains evident. Tesla's position in emerging technology is also reinforced by Elon Musk's broader portfolio. Despite recent challenges related to Starship launches, SpaceX remains focused on long-term plans around interplanetary travel. Meanwhile, xAI is reportedly on track for a capital raise that could place its valuation north of $200 billion, reflecting optimism around its AI roadmap and expanding ecosystem. However, not all developments are favorable. Tesla faces real pressure from rising competition, especially from newer entrants in China. BYD (BYDDY) continues to scale aggressively, and now Xiaomi (XIACY) has also seriously entered the fray with the YU7, which garnered over 200,000 preorders shortly after launch. Meanwhile, in Q2 2025, Tesla delivered 384,122 vehicles, 14% lower year over year. Further uncertainty surrounds Elon Musk's 'extracurricular activities' in the form of his politics. His relationship with former ally President Donald Trump has come under strain, most notably due to disagreement over Trump's tax-and-spending bill. A key provision of this bill removes the federal tax credit of $7,500 on electric vehicles, undermining Tesla's pricing advantage at a time when the company is already contending with stiff global competition. No immediate support appears forthcoming from either the European or Chinese markets, compounding concerns around Tesla's near-term outlook. Although there have been issues with Tesla's financial performance in recent quarters, it is still in a good place. However, the recently released results for the first quarter of 2025 fell short of expectations. While this underperformance may raise some concerns, it remains consistent with the growing pains of a company investing deeply in transformative technologies with long-term ambitions. For the quarter, Tesla recorded total revenue of $19.3 billion, representing a 9% decline compared to the same period a year earlier. The automotive division, which is the backbone of the company's operations, faced considerable pressure, with revenue sliding 20% to $13.9 billion. The firm's ancillary units delivered stronger performances. Energy generation revenue rose sharply by 67%, while the services division posted a 15% gain, reaching $2.7 billion and $2.6 billion, respectively. Profitability took a notable hit in the period. Earnings per share declined to $0.27, marking a steep 40% drop year-over-year and significantly missing the consensus estimate of $0.41. This shortfall primarily stemmed from a rise in input costs and a broader deceleration in the delivery of vehicles. Even so, the company displayed considerable improvement in its cash generation capabilities. Operating cash flow for the quarter climbed to $2.2 billion, a substantial improvement from the $242 million reported in the comparable period last year. Free cash flow also returned to positive territory, registering $664 million after the prior year's outflow of $2.5 billion. Tesla ended the quarter with a strong liquidity position, holding $37 billion in cash and equivalents. Taking all of this into context, the analyst community has assigned a rating of 'Hold' for Tesla stock, with a mean target price of $296.83, which has already been surpassed. However, the high target price of $500 implies upside potential of about 60% from current levels. Out of 40 analysts covering the stock, 12 have a 'Strong Buy' rating, two have a 'Moderate Buy' rating, 16 have a 'Hold' rating, and 10 have a 'Strong Sell' rating. On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Business Insider
5 days ago
- Automotive
- Business Insider
Elon Musk's North Star is becoming increasingly clear
Share Save Elon Musk recently announced that there will be a Tesla shareholder vote on investing in xAI. Musk's AI focus further blurs the lines between his companies as he looks to integrate AI across his business empire. AI development is pricey, and xAI is racing to rival tech giants like OpenAI and Google. AI has increasingly become the connective tissue of Musk Inc. In the last week, Elon Musk has shed light on two potential efforts to channel funding into his AI company, xAI, through his broader business empire. Over the weekend, Musk said Tesla shareholders would vote on a potential investment in xAI, after responding to a Wall Street Journal report that SpaceX is looking into investing $2 billion into the AI venture. Earlier in the week, the billionaire also announced that xAI's chatbot Grok would be integrated into Tesla "next week at the latest." It's no surprise that Musk is leaning into AI — the CEO has spoken about the idea in many of Tesla's earnings calls over the last year. What sets his approach apart, analysts say, is the way he's blending the boundaries between his companies. "What's different from most other companies is the relationship and interplay between his private companies and a public company (Tesla)," Garrett Nelson, senior VP and equity analyst at CFRA Research, told Business Insider. "Most other companies are doing everything under one corporate umbrella." These aren't the first examples of Musk blurring the lines between his companies, but they're the latest indication that Musk Inc., the constellation of companies under his leadership, is becoming increasingly centered on AI. Tesla is an 'AI robotics company' Musk has long pushed for Tesla's focus on AI and robotics by prioritizing projects like autonomous driving, humanoid robots, and building out its Dojo supercomputer, his ambitious bid to rival Nvidia. In a 2024 earnings call, the Tesla CEO said, "We should be thought of as an AI robotics company," and those who think of Tesla merely as an auto company are holding "the wrong framework." With the recent launch of Tesla's robotaxi service in Austin, that push is appearing more prominent, especially as Tesla's auto business, in contrast, grapples with a loss in sales momentum. Musk has promoted the advantages of buying into the "Muskonomy," pitching it as a way for shareholders to tap into his business empire, which includes SpaceX, X, xAI, and The Boring Company. Musk has even said he would prioritize " longtime shareholders" of his other companies if any of his businesses were to go public. Nelson told BI that Musk leveraging his other companies and resources could help Tesla meet its AI demands for autonomous driving. "Tesla's data needs are massive if its approach to autonomous driving is going to be successful (and scalable), as its approach will require the development of a global neural network," Nelson said. While exploring ways to pool resources across companies might benefit the broader Musk ecosystem, it could carry risk. Last week, Grok sparked backlash with antisemitic outbursts on X, potentially putting investors on edge about integrating the chatbot into Tesla's EVs. xAI apologized for the incidents and said that new instructions to prioritize engagement could have reflected "extremist views" from user posts on X. Last year, Musk also sparked concern among investors when he diverted a $500 million shipment of Nvidia chips intended for Tesla to X and xAI instead. When asked about the move in a Tesla earnings call, he said it was beneficial to Tesla because the carmaker lacked the infrastructure at the time to use the chips. Gadjo Sevilla, an analyst at EMARKETER, a sister company to Business Insider, said that Musk may be leaning on SpaceX and Tesla to fund xAI because he views them as more "mature businesses." However, he said that shifting GPUs from Tesla to xAI in the past showed where Musk's priorities were, and that could delay innovation at the automaker. "The strategy of cannibalizing one business to prop up another one could take its toll," Sevilla said. "Especially since competing carmakers are focused on developing one type of product, EVs." Musk seems to be ruling out the idea of a merger between Tesla and his AI startup for now. In response to an X user asking Tesla shareholders to weigh in on whether Tesla and xAI should be combined, Musk replied with a flat "No." Staying in the AI race is a costly venture Investing in AI efforts might make sense from a strategy perspective, but it comes with a hefty price tag. The development, training, and implementation of foundational AI systems, like xAI's Grok 4, costs many, many billions. In March, Musk announced that xAI had acquired X in an all-stock deal, valuing the AI startup between $33 billion and $80 billion. Since founding the company two years ago, he's raised major funding, including around $12 billion in Series A, B, and C funding rounds last year. The company is expected to spend about $13 billion this year, however, and is rapidly burning through its cash reserves, Bloomberg reported. Musk's challenges keeping up with AI costs aren't unique. In a May letter to California's attorney general, OpenAI revealed concerns about competitors who are "far better funded, conventional for-profit businesses." Larger tech giants, like Amazon, Microsoft, Google, and Meta, aren't showing any signs of backing down from their AI spending spree. Earnings reports from earlier this year indicate that their combined capital expenditures are set to exceed $320 billion in 2025, a notable rise from the roughly $246 billion the four companies spent in 2024. Amazon plans to allocate over $100 billion this year toward expanding AWS and scaling AI infrastructure. Meta specifically has said it plans to spend $60 billion to $65 billion in capex on its strategy this year. Zuckerberg certainly isn't slowing down. On Monday, he announced Meta would spend "hundreds of billions" on compute to build superintelligence. Wall Street seemed to approve, with Meta's stock rising 1.3% following the news, suggesting that its concern isn't about overspending on the AI race — but rather underspending and falling behind.
Time of India
07-07-2025
- Automotive
- Time of India
Tesla stocks crash: Should you sell or hold for future profits?
Tesla share price fell nearly 8 on Monday to struggle at $292.91. Elon Musk-headed company's stock has lost 35 per cent since hitting a record high in December and is the worst performing among the 'Magnificent Seven' this year. The EV maker is set to lose more than $80 billion in market valuation if current losses hold, while traders are set to make about $1.4 billion in paper profits from their short positions in Tesla shares on Monday. Now traders and investors fear that Musk's companies, which receive significant subsidies from the federal government, could suffer further as the feud between the world's wealthiest person and US President Donald Trump reignited over the weekend. Tesla Share Price Tesla sales plunged 13 per cent in the first quarter compared with the same period last year. Since hitting an all-time high of $479.76 on December 17, Tesla shares have lost about 40 per cent of their value. Tesla shares are down about $26 each since Thursday's close, to $289.75. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 11 Foods That Help In Healing Knee Pain Naturally The prediction range spans widely from lows of ~$120–$190 (Goldman Sachs at $190; HSBC at $120; UBS cut to $225) to highs of $400–$500+ (Morgan Stanley at $400–410; Benchmark at $475; Piper Sandler & Wedbush around $500–515). Tesla Stocks - Should You Hold? Live Events Tesla remains a high-conviction, high-volatility story. If you believe in its ability to scale FSD, robotaxis, and Dojo, the upside from the current ~$293 is substantial. But execution risks and macro pressures could push it well below consensus. Investor needs to track upcoming Q2 delivery data and robotaxi rollout progress and monitor regulatory as well as political developments—especially EV subsidies or trade policy shifts. One must Stay informed on analyst revisions—ESG or tech analysts may shift targets quickly. Elon Musk vs Donald Trump Tesla Stocks plunged after CEO Elon Musk's plans to launch a new U.S. political party reignited concerns about his commitment to the company's future as it struggles with declining sales. Musk unveiled the 'America Party' over the weekend after a public dispute with President Trump on the tax-cut and spending bill. Trump, who was once an ally of Musk, called the latest idea "ridiculous". Trump had threatened to cut off the billions of dollars in subsidies that Musk's companies receive from the federal government after their feud erupted into an all-out social media brawl in early June. Musk's political move comes days after Tesla posted a second straight drop in quarterly deliveries. FAQs Q1. Who is CEO of Tesla? A1. The CEO of Tesla is Elon Musk. Q2. What is President of USA? A2. President of USA is Donald Trump.
Yahoo
30-06-2025
- Business
- Yahoo
$30 Billion Oracle Deal Could Secretly Boost Tesla's AI Power Play
Oracle (NYSE:ORCL) just signed a blockbuster cloud deal worth up to $30 billion a year with G42, the Abu Dhabi-based AI firm with growing global reach. The agreement, spread across multiple years, is focused on building AI-optimized cloud data centers, particularly in the U.S., where demand for training large AI models is exploding. G42 will become one of Oracle's largest customersand potentially one of its most strategicby anchoring core workloads on Oracle Cloud Infrastructure (OCI), with the goal of scaling generative AI, LLMs, and other compute-heavy use cases. Warning! GuruFocus has detected 10 Warning Signs with ORCL. Here's where it gets interesting: G42 is already using Tesla (NASDAQ:TSLA)'s Dojo chips to train some of its advanced AI models. And as part of the new partnership, Oracle data centers will now be optimized to handle Dojo-based workloads for G42. This doesn't mean Tesla's selling its chips to Oracle directly. But it does open the door for deeper integration of Tesla's hardware stack into one of the fastest-scaling AI infrastructure deployments globallywithout Tesla having to build the data centers themselves. While Tesla hasn't commented on the arrangement, the ripple effects could be real. This setup could expand the reach of Tesla's custom compute hardware, helping validate the Dojo architecture beyond just internal FSD training. If Oracle and G42 deliver on their cloud scale-up, Tesla may quietly benefit from growing demand for its AI stackespecially as new use cases for vision, autonomy, and robotics take shape. Investors tracking Tesla's long-term AI optionality should keep an eye on how this plays out. This article first appeared on GuruFocus.
Yahoo
30-06-2025
- Business
- Yahoo
$30 Billion Oracle Deal Could Secretly Boost Tesla's AI Power Play
Oracle (NYSE:ORCL) just signed a blockbuster cloud deal worth up to $30 billion a year with G42, the Abu Dhabi-based AI firm with growing global reach. The agreement, spread across multiple years, is focused on building AI-optimized cloud data centers, particularly in the U.S., where demand for training large AI models is exploding. G42 will become one of Oracle's largest customersand potentially one of its most strategicby anchoring core workloads on Oracle Cloud Infrastructure (OCI), with the goal of scaling generative AI, LLMs, and other compute-heavy use cases. Warning! GuruFocus has detected 10 Warning Signs with ORCL. Here's where it gets interesting: G42 is already using Tesla (NASDAQ:TSLA)'s Dojo chips to train some of its advanced AI models. And as part of the new partnership, Oracle data centers will now be optimized to handle Dojo-based workloads for G42. This doesn't mean Tesla's selling its chips to Oracle directly. But it does open the door for deeper integration of Tesla's hardware stack into one of the fastest-scaling AI infrastructure deployments globallywithout Tesla having to build the data centers themselves. While Tesla hasn't commented on the arrangement, the ripple effects could be real. This setup could expand the reach of Tesla's custom compute hardware, helping validate the Dojo architecture beyond just internal FSD training. If Oracle and G42 deliver on their cloud scale-up, Tesla may quietly benefit from growing demand for its AI stackespecially as new use cases for vision, autonomy, and robotics take shape. Investors tracking Tesla's long-term AI optionality should keep an eye on how this plays out. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
