Should You Buy Tesla Stock Before June 12?

Should You Buy Tesla Stock Before June 12?

  • 03.06.2025 09:16
  • msn.com
  • Keywords: FSD, Austin

Tesla's stock is volatile as investors watch its June 12 robotaxi launch in Austin. The event may reveal the effectiveness of Tesla's self-driving tech, but its core EV business struggles with lower sales. Analysts caution against relying on short-term events for investment decisions, as the company's long-term potential remains uncertain.

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Estimated market influence

Tesla

Tesla

Negativesentiment_dissatisfied
Analyst rating: Neutral

Struggled with core EV business, low deliveries (337k Q1), high stock multiple

Morgan Stanley

Negativesentiment_dissatisfied
Analyst rating: —

Skeptical about June 12th robotaxi launch

CNBC

Neutralsentiment_neutral
Analyst rating: N/A

Mentioned Musk's comments on autonomous fleet

Bloomberg

Neutralsentiment_neutral
Analyst rating: N/A

Reported Tesla's robotaxi plans

Austin

Neutralsentiment_neutral
Analyst rating: N/A

Location of robotaxi launch

Context

Analysis of Tesla Stock Before June 12 Launch

Key Facts and Data Points

  • Tesla's Q1 Deliveries: 337,000 vehicles, the lowest in over two years.
  • EV Business Struggles: Sales have declined due to increased competition and CEO Elon Musk's political involvement.
  • Stock Valuation: Trading at a high multiple, with market expectations already factoring in future initiatives.
  • Robotaxis Launch:
    • Date: June 12, starting in Austin, Texas.
    • Initial fleet: 10-20 Tesla Model Ys with human supervisors.
    • Geofenced operation: Limited to specific areas in Austin.
    • Musk's target: 1,000 units on the road within a few months.
  • FSD Technology:
    • Tested over billions of miles, with Tesla claiming it is safer than human driving.
    • Skepticism remains about its effectiveness, with varying reports and analyst caution.

Market Implications

  • Robotaxis Potential: Success could generate significant revenue and position Tesla as a leader in autonomous mobility.
  • Autonomous Driving Sector: Long-term growth prospects are high, but the industry is still early-stage and uncertain.
  • Investor Sentiment: High valuation suggests market optimism about future initiatives like robotaxis and Optimus robots.

Competitive Dynamics

  • Increased Competition: Traditional automakers (e.g., Ford, GM) and tech companies (e.g., Waymo) are vying for dominance in autonomous driving.
  • Strategic Considerations: Tesla's plans to integrate existing vehicles into a ride-hailing fleet could disrupt the market.

Regulatory and Long-Term Effects

  • Regulatory Uncertainty: Autonomous driving technology faces challenges with safety, liability, and regulatory approvals.
  • Long-Term Growth: Tesla's success in robotaxis could redefine its business model and market position.

Investment Strategy

  • Short-Term Volatility: Investors should focus on long-term fundamentals rather than short-term events like the June 12 launch.
  • Valuation Risk: High stock valuation may lead to volatility if future initiatives underperform.

Conclusion

While Tesla's robotaxis and autonomous driving initiatives hold promise, the company faces challenges in scaling its technology and competing with established players. Investors should remain cautious and focus on long-term growth potential rather than short-term events.