Latest news with #Robotaxi
Business Insider
7 hours ago
- Automotive
- Business Insider
It's Time to ‘Pump the Brakes,' Says Analyst on Tesla Stock (TSLA)
Tesla (TSLA) is one of the most popular stocks among both Wall Street and retail investors, and understandably so, as the stock has generated phenomenal returns over the years, yielding a total return of 1,854% over the past decade. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter It has also captured the public's imagination with its forays into exciting fields like robotics and self-driving cars, as evidenced by this week's Robotaxi launch, which caused shares to surge 8% on Monday but have since pared gains to now trade ~2% lower. Despite this rally driven by Robotaxi enthusiasm, the stock is down nearly 30% from its 52-week high, which may lead some investors to look for the opportunity to 'buy-the-dip' on this popular name. However, the stock hardly appears to be a bargain at this point in time and may decline further. TSLA's Extreme Valuation Raises Eyebrows While Tesla (TSLA) is an intriguing self-driving stock, and the limited Robotaxi launch is generating considerable investor excitement, the stock is incredibly expensive from a valuation perspective. Shares of Tesla trade at an astronomical valuation of 169x 2025 earnings estimates. It's hard to understate how frothy this valuation is, but to put it into perspective, it's over eight times as expensive as the S&P 500 (SPX), which trades for 21x forward earnings estimates (and keep in mind that this is in and of itself a historically above-average valuation for the index). You can make the case that Tesla should be worth more than the 'average' company in the S&P 500, as the company and the rest of the Magnificent Seven stocks are some of the most dominant and innovative companies in the world. But not only is Tesla more expensive than the average stock in the S&P 500, it's also considerably more expensive than all of its magnificent seven peers, as TipRanks data shows. For comparison, Microsoft (MSFT) trades at 36x 2025 earnings estimates, while Amazon (AMZN) and Nvidia (NVDA), which have long been derided by many value investors for their lofty valuations, trade at similar valuations of 34x forward estimates for 2025 and 2026, respectively. Meta Platforms (META) and Apple (AAPL) both trade for roughly 27x 2025 estimates. Alphabet (GOOGL) is currently the cheapest stock in the Magnificent Seven, trading for just 18x 2025 estimates. TSLA is Priced for More Than Perfection When a stock is trading at such elevated valuation levels, it's often said to be 'priced for perfection.' But in this case, it's difficult to argue that everything is unfolding perfectly—significant risks remain. Elon Musk is widely regarded as a visionary CEO and brilliant engineer, but his tendency to court controversy is unparalleled, and it's increasingly cutting across political lines. While alienating one side of the political spectrum might be manageable—potentially offset by support from the other—Musk has managed to provoke backlash from both the left and the right in a relatively short period of time. His public support for Donald Trump during the presidential election alienated many on the left, while his subsequent high-profile dispute with Trump has also drawn criticism from the right. Although the details have been widely reported, the broader concern is that this bipartisan controversy could ultimately affect consumer sentiment and impact sales. When you pair this with the stock's lofty valuation, the potential downside risk becomes more pronounced. If Robotaxis are Overhyped, TSLA Could be in Trouble Let's take a closer look at Tesla's Robotaxi initiative, which has been driving the stock's momentum this week following a high-profile launch event in Austin. While the event generated significant media buzz, the substance of the launch was more modest. According to Reuters, only a small number of Teslas—each with a human safety monitor in the front seat—provided rides within a tightly geofenced area of Austin. Importantly, this was a private, invite-only event aimed at investors, influencers, and brand enthusiasts, rather than a public rollout. Many attendees posted their ride experiences on social media, adding to the event's visibility. That said, the launch was limited in both scale and scope. Even within this controlled environment, there were reported issues. The Verge noted an incident in which a Model Y briefly drove the wrong way down a street, while Tesla critic Ed Niedermeyer highlighted another case where a vehicle abruptly braked in traffic in response to a stationary object outside its path. These and similar reports have already prompted regulatory attention, with the National Highway Traffic Safety Administration reaching out to Tesla shortly after the event. It's also worth noting that Tesla is not alone in the autonomous vehicle space, and some competitors appear to be significantly further along. Alphabet's (GOOGL) Waymo, for instance, is already operating at scale, providing over 250,000 rides per week across cities like Los Angeles, San Francisco, and Phoenix. Having recently surpassed the 10-million ride mark, Waymo is quietly leading in real-world deployment, despite receiving far less media attention than Tesla. In this context, while Tesla's ambitions are noteworthy, its current progress in the Robotaxi space still lags behind established players. Is Tesla a Buy, Sell, or Hold? Turning to Wall Street, TSLA carries a Hold consensus rating based on 14 Buys, 12 Holds, and nine Sell ratings assigned in the past three months. The average TSLA stock price target of $291.31 implies 10.5% downside potential over the coming year. Sky-High Valuation Leaves Little Room for Error in Tesla's Stock While shares of Tesla have regained momentum based on robotaxi excitement, it's likely a good time to pump the brakes on this enthusiasm. The limited nature of the launch, strong competition already in place (and further ahead of Tesla), and the regulatory attention the company is already facing illustrate the challenges ahead. Robotaxis aside, Musk has demonstrated a remarkable ability to make enemies on both sides of the U.S. political divide, which has already led to a consumer backlash and could further harm sales. Despite these developments, the stock remains priced for perfection, trading at a sky-high price-to-earnings multiple—approximately 8.5x higher than the S&P 500 average—and at a premium well above any of its peers in the so-called 'Magnificent Seven.' The average analyst price target implies a potential 10% downside, and the consensus Hold rating underscores the elevated risk associated with the current valuation.
The Star
10 hours ago
- Automotive
- The Star
Tesla invited influencers to test its robotaxi. Here's what they had to say
For now, the test vehicles are operating in a limited area. — Reuters AUSTIN: A handpicked group of passengers invited for early rides from Tesla Inc's autonomous, nearly driverless ride-hailing service seemed to like it. But video some posted to social media suggests the automaker's system struggles to comply with traffic laws. Some passengers were wowed by the car's ability to slow for speed bumps, an ambulance or to avoid hitting a pedestrian. One said it did just as well after sundown as during the day. Another was wild about what it may mean for the Austin-based automaker's future. "I was completely mind blown that the same car I can buy today starting at around $38k – which also happens to be the best selling car in the world – just did paid driverless rides around Austin, TX without someone behind the steering wheel and pedal," X user @farzyness posted after three rides in one of the Model Y vehicles being used as robotaxis – which actually start at more than US$50,000 (RM 212,199) , according to "The implications from this are far-reaching and very disruptive. This breaks transportation." He was among a handful of online Tesla influencers – fans who post regularly about the company on social media– who received invitations to download the Robotaxi app and try the company's service Sunday in Austin. It's not available yet to the general public. Rival Waymo already has deployed driverless taxis in Austin, Los Angeles, San Diego and other cities using a different technology that allowed it to get to market faster. It recently completed its 10 millionth paid ride and has begun testing in San Antonio and other cities. Other companies also are testing in Austin. Tesla CEO Elon Musk has made the robotaxi program a priority, and any trouble with it could be highly damaging to the company's stock price, which had tumbled 20% this year. Last Sunday's limited rollout appeared to give it a boost, though, with the share price rocketing at Monday's opening bell. It closed up more than 8% and was up slightly in after-hours trading. Also among the passengers was Rob Maurer, an investor whose live ride video shows the Model Y he's in entering an intersection in a left-turn-only lane. The Tesla hesitates to make the turn, swerves right and continues into an unoccupied lane meant for traffic moving in the opposite direction. A honking horn can be heard as the robotaxi returns to the correct lane over a double-yellow line, a violation. Other riders shared videos of Tesla robotaxis exceeding the posted speed limit by 4 or 5 mph (6.43kph or 8kph). For now, the test vehicles are operating in a limited area. The current geofence area goes as far south as Ben White Boulevard and US 290, west to Texas State Loop 1, north to Cesar Chavez Street and east to US 183. According to CEO Elon Musk, Sunday's trial had a flat fee of US$4.20 (RM18) for the select group. It was unclear if Tesla paid for the influencers' trips to Austin, their robotaxi fares or for social media posts about the service. The company hasn't responded to requests for comment. "As an Early Access Rider, you can be among the first to use our new Robotaxi App and experience a ride within our geofenced area in Austin," the invitations said. "Through this exclusive preview, you'll have the opportunity to provide valuable feedback." Though there was no one behind the wheel, information sent with the invitations indicated front-seat human safety monitors – Tesla employees riding with Sunday's invitees – would be subject to the same restrictions as drivers of Tesla models with the so-called Full Self-Driving system. That means the cabin camera was watching the monitor's eyes to make sure they're on the road and, presumably, warn them if they're not. A few of the videos posted Sunday showed monitors turned around to look at a passenger in the back seats. – San Antonio Express-News/Tribune News Service
Yahoo
21 hours ago
- Automotive
- Yahoo
Elon Musk fired Omead Afshar amid declining sales, Forbes says
Tesla (TSLA) CEO Elon Musk fired Omead Afshar, the company's head of operations in North America and Europe, amid declining sales in both regions and the brand's falling popularity, Alan Ohnsman of Forbes, citing people familiar with the matter. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on TSLA: Disclaimer & DisclosureReport an Issue Musk confidant Omead Afshar left Tesla, Bloomberg reports Charlotte, NC removes Tesla from approved vehicle list, Fox Business says Can Robotaxi Hype Shield Tesla Stock (TSLA) From a 21% Sales Slump? Lyft Stock (LYFT) Motors Forward as Drivers Help Guide Robotaxi Journey Austin reports 'safety concern' for Tesla Robotaxi, BI says 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
Yahoo
21 hours ago
- Automotive
- Yahoo
Musk confidant Omead Afshar left Tesla, Bloomberg reports
Omead Afshar, who was promoted last year to oversee Tesla's (TSLA) sales and manufacturing operations in North America and Europe, and is one of CEO Elon Musk's closest confidants, has left the company, Dana Hull and Ed Ludlow of Bloomberg report, citing people familiar with the matter. News of the exit has circulated internally among some employees in recent days, sources told Bloomberg. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on TSLA: Disclaimer & DisclosureReport an Issue Can Robotaxi Hype Shield Tesla Stock (TSLA) From a 21% Sales Slump? Lyft Stock (LYFT) Motors Forward as Drivers Help Guide Robotaxi Journey Austin reports 'safety concern' for Tesla Robotaxi, BI says Notable open interest changes for June 26th VOO ETF News, 6/26/2025 Sign in to access your portfolio
Yahoo
21 hours ago
- Automotive
- Yahoo
Charlotte, NC removes Tesla from approved vehicle list, Fox Business says
The City Council of Charlotte, North Carolina has voted to pull Tesla (TSLA) from a list of approved vehicle makers for municipal use, with one supportive member citing 'safety issues,' Fox Business' Charles Creitz reports. Councilwoman LaWana Mayfield, who led the vote, has been calling for such a move for weeks, the author notes. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on TSLA: Disclaimer & DisclosureReport an Issue Can Robotaxi Hype Shield Tesla Stock (TSLA) From a 21% Sales Slump? Lyft Stock (LYFT) Motors Forward as Drivers Help Guide Robotaxi Journey Austin reports 'safety concern' for Tesla Robotaxi, BI says Notable open interest changes for June 26th VOO ETF News, 6/26/2025 Sign in to access your portfolio
