Tesla's unexpected stock price surge indicates the amount of speculative euphoria left out of facts in the real world. According to the post above The Robotaxi fallout will wake investors up to rely more on the future of autonomous vehicles. It looks past extremely real challenges that the company will face. Regulatory and technological obstacles, to say nothing of the speed that the company is moving toward commercializing driverless taxis, are respectable concerns.
And I think it's worth considering Tesla's history of disrupting industries that have always pushed the boundaries of technology. It doesn't matter how likely they seem there is a problem. The company has faced skepticism before. Whether it is the mainstreaming of electric vehicles (EV) or the efficiency of battery storage But the company was able to lead in both areas. This ability to innovate is why Tesla's valuation has increased, even if it is based in part on unproven performance. Also Miguel Artur's talk on the relationship between Tesla's valuation and real earnings growth It should make any investor think carefully before exaggerating. Promoting future potential by taking a realistic look at current profitability and market conditions Tesla's margins are shrinking due to increased competition in the EV market, and investors will consider this when considering the results. Return on investment in the long term.
Tesla's recent decline, especially following the highly publicized Robotaxi event, showed just how removed investor expectations are from business fundamentals. While exciting, Tesla's vision for autonomous taxis has yet to showcase clear execution and profitability. Take, for example, analysts at Wells Fargo, who said Tesla's demo felt like a 'controlled amusement ride' that fell short compared with Waymo, already scaling operation.
While the challenges in the short term are real, as an innovator, Tesla's long-term potential remains huge. For now, though, concerns over falling EV margins, over-reliance on unproven technologies, and various other such factors are all good reasons for investors to show caution. Yes, Tesla has a rich valuation, but already, the market has begun calibrating its optimism about speculative ventures such as Robotaxis.
Of course, while the vision of driverless taxis by Tesla certainly is ambitious, the truth remains that such promises are difficult to fulfill. Comparison with Waymo showcases how other players are exploring this service. It underlines that Tesla needs to prove its ideas in the real world. Not just democratic idealists. However, I do believe that a proper view of Tesla's long-term potential is significant. While there are assuredly short-term challenges, this company has shown its capabilities to innovate and evolve. Advanced developments have occurred within the area of battery engineering. Now add the rapidly improving areas of power management and even transportation engineering. That's a departure for any auto manufacturer. Certainly, accidents can turn. And much of that alteration occurs in an adaptive industry, also.
It is, however, concerning to see that this translates into low EV profit margins, but Tesla has built a strong brand and customer loyalty into its system, making it harder to break. Moreover, their leadership position in the energy efficiency technology of EVs may bring in new sources of income. I do agree with you about the aspect of speculation. And it's very important for the investors to verify and cross over the fundamentals before proceeding to take the decision. But those same investors should not divert their attention from Tesla in terms of innovation and disruption. Curiosity and that would be a healthy understanding that leads towards long term growth. And as time passes forward, it's interesting how Tesla would get past those challenges. Will it turn the vision into a successful reality?
When I saw the updates of Tesla's new products, I thought of something first, "how affordable is it, compared to the alternatives? We all know those are very big innovations, but people won't use a product simply because it's an innovation, it has to solve a problem while also bringing in more profit than the alternatives.
How expensive is a Robotaxi going to be and how much profit is it going to bring? Is it guaranteed to bring in the cost of acquiring it and also keeping it operational, before we talk about profit? Which is cheaper for the taxi company to buy normal cars and hire drivers or buy robotaxis?
I saw that the cost of a Tesla robot is between $20k to $30k.
So what exactly can the robot do that hired people can't do cheaper and faster? Also, what is the lifespan of the robot?
As I said earlier, not many people are going to go for something, when the alternative the cheaper and at the same time can give you the same satisfaction.
Tesla's new products are next generation innovations that are before its time, so for now in my opinion, its not going to work till the cost and profit will be better than other alternatives.
While the successes of Tesla are truly phenomenal, But success is also a product that is defined by real benefits sufficiently outweighing real costs. So, your question about what benefits from Robotaxis is completely relevant. for taxi companies The capital expenditure and the operating expenses thereafter would be a determining factor to whether or not the taxi business should undertake self-driving cars. Besides, a Robotaxi for $20,000 to $30,000 would just not be justified unless it saves money compared to the traditional driver-hiring and usage of vehicle. Companies might unwilling to shift because of this traditional driver-hiring and usage of vehicle concepts. Total cost of ownership should also be taken into account. This involves preservation, insurance, and other issues related to regulation, which may add further reduction to profitability.
You also raise very serious issues concerning the capabilities of these robots versus those of drivers. Whereas the robots can offer high precision and efficiency, But again, the question is whether these robots have to prove their reliability and cost-effectiveness in real-life conditions. And if the lifespan of a Robotaxi does not vary much from that of a regular car, The value of that decision will keep on moving with better options. You are quite right in pointing out that consumers invariably steer themselves toward solutions that give equal or better value for less. Teslas innovation, however remarkable, is likely to turn out ultimately to be a fix. Real problems are better economically than simplistic solutions. Until then Such measures may have rather limited use.
