Dow Jones Futures: Will Elon Musk's Big Robotaxi Bet Pay Off? Four Stocks In Buy Areas
The market rally held in a range this past week, amid Israel-Iran news. The Tesla robotaxi launch is set for Sunday.
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TSLA: Tesla Robotaxi Push Could Be a $1 Trillion Game-Changer
June 20 - Tesla (NASDAQ:TSLA) is set to launch its robotaxi operations in Austin this Sunday, with about 20 Model Y vehicles operating in a designated area, Wedbush mentioned in a Friday note. The firm called the move a key milestone that could define Tesla's next phase, estimating the autonomous unit alone could eventually add $1 trillion to the electric carmaker's valuation. Wedbush maintained its Outperform rating and $500 price target, citing Tesla's global reach and progress in artificial intelligence and driverless technology. The firm expects Tesla to scale the service to roughly 25 U.S. cities within a year and sees potential policy support ahead. Analysts said a Trump presidency could accelerate regulatory clearance for full self-driving systems. Tesla plans to begin production of its dedicated robotaxi model, the Cybercab, sometime next year, the note added. Wedbush believes Tesla's roadmap on autonomy and robotics will unfold gradually, saying, Rome wasn't built in a day. In a bull case, the firm sees Tesla reaching a $2 trillion market cap by the end of 2026. This article first appeared on GuruFocus.
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3 reasons the US stock market could crash in September 2025
The US stock market's close to another all-time high, at least when looking at the S&P 500 index. That's terrific for anyone who's been snapping up shares in recent years. However, despite the seemingly strong investor sentiment, there are some potentially massive risks being overlooked, several of which could even trigger a full blown crash later this year. There are several concerning trends that the market is seemingly ignoring. I think the three biggest are: The investment management company Pimco has recently calculated the cyclically adjusted price-to-earnings (CAPE) ratio of the S&P 500 to be in the 94th percentile. That's a fancy way of saying US stocks are trading at earnings multiples significantly higher than their historical average. And historically, such a high CAPE has been a prelude to major market crashes as in 1987 and 2000. At the same time, new tax cuts and higher government spending in the US during a time of fiscal instability and tariff uncertainty create a lot of complications for the Federal Reserve. With fears of inflation potentially making a comeback, the central bank could be forced to start hiking interest rates again. And that might spark a fresh wave of corporate defaults given the growing bubble of overleveraged balance sheets. Beyond brewing trade wars, conflicts have started popping up across the globe, particularly in Eastern Europe and the Middle East. Continued escalation of tensions could lead to even further supply chain disruptions, oil price shocks, or a capital migration to gold, which could spark significant volatility in the stock market – particularly among the businesses trading at lofty valuations. As we approach the end of summer, the impact of current macroeconomic uncertainties is expected to emerge. That means September could be the tipping point. Does that mean a crash is guaranteed to happen? Of course not. Geopolitical tensions could calm while economist forecasts could be completely wrong (it wouldn't be the first time). So what should investors do? Trying to time the market is a strategy that almost never works. Instead, holding through the storm has been a far more successful strategy in the past. Having said that, trimming large portfolio positions might be prudent, especially if the stocks are trading at a lofty valuation. Take Nvidia (NASDAQ:NVDA) as an example. The GPU chip designer has been one of the best-performing US stocks over the last five years, thanks to skyrocketing demand for its technology. The explosion of artificial intelligence (AI) infrastructure investments by data centres has translated into triple-digit profit growth, propelling the market-cap well beyond $3trn. However, economic turbulence from the macro-environment could cause AI-related spending to slow significantly. That could potentially wipe out a significant chunk of its income stream. In such a scenario, a sharp share price drop wouldn't be surprising – especially for a company operating in the cyclical semiconductor space. That's why investors with a large position in Nvidia today may want to consider potentially trimming their exposure. If a crash does emerge, there are going to be some fantastic, high-quality companies going on sale. And by having a watchlist to top up on top-notch stocks, investors can be ready to consider incoming bargains like (possibly) Nvidia if they're not already invested. The post 3 reasons the US stock market could crash in September 2025 appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended Nvidia. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 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
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Does BYD or Tesla stock offer the best value?
Tesla (NASDAQ:TSLA) and BYD (OTC:BYDD.F) are the two titans of the global electric vehicle (EV) market, but their investment cases diverge sharply when you dig into the numbers and outlook. Here's how they stack up for investors looking ahead. Tesla's forward price-to-earnings (P/E) ratios remain stratospheric by any standard. The company is expected to trade at 168.8 times earnings in 2025, falling to 111.4 times in 2026 and 85.7 times in 2027. Even by its own five-year history, these multiples are elevated, and they are more than 10 times the consumer discretionary sector median. BYD, by contrast, looks far more modest. Its forward P/E is 18.4 times for 2025 and 14.2 times for 2026. That's just a fraction of Tesla's and much closer to sector norms. This huge valuation gap reflects the market's belief in Tesla's future growth, but also means any disappointment could hit the shares hard. Tesla's price-to-sales ratio for 2025 is a lofty 10.4 times, while BYD's is just 0.65 times. In other words, investors are paying a huge premium for each dollar of Tesla's sales, while BYD trades closer to traditional automaker multiples. BYD's lower multiple reflects its mass-market positioning and focus on affordability, while Tesla's premium signals expectations for high-margin growth and disruptive new business lines. Tesla boasts a market cap over $1trn, with $37bn in cash and $13bn in debt. This gives it a strong net cash position and plenty of firepower for R&D and expansion. BYD, with a market cap around $147bn, holds $21bn in cash and $5.7bn in debt. Still solid, but on a smaller scale. Tesla's financial muscle gives it flexibility, but BYD's balance sheet is also robust and supports its rapid global expansion. The real battleground is not just EVs, but autonomous driving and robotics. Tesla's valuation is highly detached from automotive peers because investors are betting it will dominate self-driving technology and unlock new business models like robotaxis and AI-powered logistics. Its Dojo supercomputer and Full Self-Driving (FSD) efforts are central to this thesis, though regulatory hurdles remain. BYD is not standing still. Its latest models integrate advanced driver-assist systems, LiDAR, and rapid-charging battery tech. This has already made headlines. However, its approach is more incremental, focusing on affordability, scale, and steady technological improvements. Coupled with the fact that it's Chinese, it hasn't been afforded the same attention by investors. BYD trades at far lower valuation multiples and has recently overtaken Tesla in global EV sales, especially in China and Europe. Meanwhile, Tesla commands a huge premium based on its potential to lead in autonomy and AI-driven transport. However, the execution risk is huge. For value-focused investors, BYD is the obvious choice, but clearly the market favours Tesla and Elon Musk's ambitions. The post Does BYD or Tesla stock offer the best value? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool James Fox has no position in any of the shares mentioned. The Motley Fool UK has recommended Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
