The purchasing of Tesla shares at the moment is being discussed as a venture that is quite risky yet has the potential to have an enormous payoff. The emphasis is not only on the electric car sales but on what Tesla is promising by entirely investing in the technology enabling full self-driving and an autonomous transportation service in the form of Robotaxis.
These characteristics make the story of Tesla’s investment stick out. The company is having a massive bet that its complete self-driving system and Robotaxi business, coming in future will change the industry. Such innovations are not regarded as pure bonuses. They are taken as the backbone of the value of Tesla in future years.
There are minor issues that Tesla is facing now. This year sales have slumped, and the introduction of the end of US tax credits across electric vehicles is also likely to affect demand. Added to this, the people are not able to pay high interest rates to buy new cars. The stock price is relatively high compared to what Wall Street estimates Tesla will make in the coming year. Still, investors and management come back again to the future possibilities.
The Robotaxi concept is still a long way off. Issues regarding regulations and the ability of the technology to be on a fast track are in question. Musk is optimistic, but he also acknowledges that there will be hard quarters ahead. But when Tesla does it, the opportunity of high returns is quite possible. Effective implementation of Robotaxis would increase the adoption rate of Tesla’s full self-driving, increase car sales, and pursue more funding. There are intense competitors in the race, such as Alphabet and Amazon, but because Tesla is miles ahead and financially mitigated, it is the leading company to look out for.
Becoming an early investor in Tesla could be a crazy adventure these days, but the investors who are going to invest in it early may get a profitable return in case the vision moves forward successfully. Nobody knows what the potential is, but everybody knows what the potential is.
