Latest news with #Cybercab
Business Insider
11 hours ago
- Automotive
- Business Insider
‘It's Only Just Begun,' Says Andres Sheppard About Tesla Stock
Tesla (NASDAQ:TSLA) stock is steering into the future – quite literally. On June 22, the company officially launched its much-anticipated robotaxi service in Austin. Tesla began using Model Y vehicles equipped with autonomous driving technology to transport select invite-only passengers around predefined neighborhoods at a playful flat fee of $4.20 per ride. For now, however, each vehicle still includes a safety monitor seated in the front passenger seat, providing an additional layer of supervision and reassurance during these autonomous trips. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. It wasn't long before Tesla took its next leap forward: on June 27, the company completed its first fully autonomous vehicle delivery. Imagine a Model Y quietly departing Tesla's Gigafactory, cruising effortlessly through Austin's streets, and parking itself in the customer's driveway without a single human intervention – that's exactly what happened. Furthermore, the company announced plans last week to ramp up its robotaxi operation in Austin by adding more vehicles and expanding service coverage. As the system matures and local regulations allow, Tesla aims to phase out the in-car safety monitors altogether, ushering in a truly driverless passenger experience. Looking further ahead, Tesla is already sketching out the next generation of autonomous ride-sharing. In 2026, the automaker plans to roll out its futuristic Cybercab – a purpose-built, fully autonomous vehicle without a steering wheel or pedals. Cantor analyst Andres Sheppard sees Tesla's latest moves as another powerful signal of the company's strategic edge in the rapidly evolving autonomous vehicle landscape. According to Sheppard, Tesla's focus on expanding its robotaxi services marks a critical step toward solidifying its role as a frontrunner in the competitive ride-sharing market. 'We expect Robotaxi expansion into the Bay Area (in 3Q), followed by Arizona, Nevada and possibly Florida (in 4Q25/2026E), subject to regulatory approvals… Overall, we continue to see Tesla's Robotaxi segment as a software-as-a-service, high-margin model, and we expect TSLA to have the ability to rapidly scale following commercialization. We expect TSLA will capture a leading market share in these industries,' Sheppard opined. To this end, Sheppard rates TSLA shares an Overweight (i.e., Buy) along with a $355 price target. (To watch Sheppard's track record, click here) What does the rest of the Street think? Looking at the consensus breakdown, opinions from other analysts are more spread out. 14 Buys, 15 Holds and 8 Sells add up to a Hold (i.e. Neutral) consensus rating. In addition, the $310.65 average price target indicates ~5% downside from current levels. (See TSLA stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Globe and Mail
a day ago
- Automotive
- Globe and Mail
Elon Musk Thinks Tesla Will Become the World's Most Valuable Company. I Predict Its Stock Could Plunge by 70% (or More) Instead.
Key Points Elon Musk thinks autonomous vehicles and humanoid robots could make Tesla the most valuable company in the world one day. He might be right, but those product platforms are still years away from generating meaningful revenue, and Tesla's core business is faltering. To make matters worse, Tesla stock is trading at a sky-high valuation that could pave the way for a sharp correction. These 10 stocks could mint the next wave of millionaires › Tesla (NASDAQ: TSLA) is one of the world's largest manufacturers of electric vehicles (EVs), but its CEO, Elon Musk, is no longer focused on just selling cars. He's preparing the company for an autonomous future by directing its resources into its full self-driving (FSD) software, its Cybercab robotaxi, and its humanoid robot named Optimus. Musk believes Tesla will become the world's most valuable company by far if those product platforms are successful. But in the here-and-now, 74% of Tesla's total revenue still comes from its EV business, where sales are declining at an alarming pace. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Musk held a conference call with investors last Wednesday to discuss Tesla's progress during the second quarter of 2025 (which ended on June 30). His comments suggest that it will be a long time before products like the Cybercab and Optimus are generating enough revenue to offset the struggling EV business, so here's why I predict Tesla stock could plunge by 70% (or more) in the meantime. Tesla's EV deliveries continue to sink Tesla is off to a rough start to 2025. It delivered 720,803 EVs during the first six months, which was a 13% decline compared to the same period last year. The drop in sales had a significant impact on the company's total revenue, which suffered a 9% year-over-year decline during the first quarter, followed by an accelerated drop of 12% in the second quarter. Competition is a big reason for Tesla's sluggish sales. While the company's Model Y remains the best-selling car in a handful of countries, consumers more broadly seem to be flocking to other brands. In Germany, for example, Tesla's sales crashed by 60% in June, despite EV sales growing by 8.6% across the country overall. In other words, Tesla is rapidly losing market share in Europe's largest car market. Affordability seems to be a major factor for consumers. China-based BYD sells its entry-level Dolphin Surf EV for around $26,000 in Europe, whereas Tesla's Model 3 (its cheapest EV) starts at $40,000. BYD's sales exploded fourfold in Germany during June, compared to the year-ago period. Fortunately, Tesla plans to release a low-cost EV to compete. It was reportedly designed on the flagship Model Y platform, minus all of its premium features to bring the price down. It just entered production, but only time will tell whether it's enough to pull Tesla's EV business out of its slump. Tesla's robotaxi business is still too small to offset weak EV sales Elon Musk believes the future of Tesla's car business is autonomous. In June, the company launched a supervised, invite-only version of its planned autonomous ride-hailing platform, using its passenger EVs (like the Model Y) with its FSD software installed. They are completing autonomous trips around Austin, Texas, right now, with a human in the passenger seat to keep an eye on things. The test lays a foundation for the rollout of the Cybercab, which is a purpose-designed robotaxi that won't have pedals or even a steering wheel. It will go into mass production next year, and Musk's goal is to have millions of them hauling passengers and even small commercial loads all day and night, earning revenue for Tesla around the clock. Regulators currently stand in the way of a broad robotaxi rollout. Tesla's FSD platform doesn't have approval for unsupervised use in any U.S. states right now, but Musk is hopeful that will soon change. In fact, he believes the company's robotaxi business could have enough coverage to serve half of the entire U.S. population by the end of 2025, likely using a mix of passenger EVs and early versions of the Cybercab. However, during a conference call with investors for the second quarter of 2025, Tesla's Vice President of artificial intelligence, Ashok Elluswamy, said only a "handful" of passenger EVs are currently deployed in Austin for the test program. He did say the operating region around Austin will soon expand tenfold, which should put more cars on the road, but it places the company significantly behind the competition. Alphabet 's Waymo, for instance, is already completing over 250,000 paid autonomous trips every week across five U.S. cities completely unsupervised. The idea that Tesla can go from a handful of cars in Austin to serving half of the U.S. population within the next five months -- leapfrogging Waymo in the process -- feels very unrealistic. Tesla's sky-high valuation sets up a potential crash of 70% Tesla's earnings per share (EPS) sank by 18% year over year during the second quarter, which followed a 71% drop in the first quarter. Its trailing-12-month EPS now stands at $1.67, placing its stock at an eyewatering price-to-earnings (P/E) ratio of 180.7. That makes Tesla five times more expensive than the Nasdaq-100 technology index, which trades at a P/E ratio of 32.5. It's also three times more expensive than Nvidia -- one of the world's highest-quality and fastest-growing companies -- which trades at a P/E ratio of 54.3. If Tesla's earnings continue to shrink, which seems likely based on the state of its EV sales, then its P/E ratio is going to keep climbing unless its stock price plunges. As things stand today, Tesla stock would have to plummet 70% just for its P/E ratio to match Nvidia's (and even further to match the Nasdaq-100). I think that's a real possibility in the near term. The picture might look a little different for investors who are willing to hold Tesla stock for the long term. Dan Ives from Wedbush Securities thinks the company's robotaxi business presents a trillion-dollar opportunity, but that figure might be conservative if it winds up serving half the U.S. population eventually. Then there is the Optimus humanoid robot, which could be a hot product in every manufacturing facility and even in every household one day. It's still an early-stage product, but Tesla just announced version three, which irons out some of the kinks from the previous models. Musk thinks Tesla will be producing 1 million Optimus robots annually five years from now, and he previously said this product could deliver $10 trillion in revenue for the company over the long term. Investors who believe in Tesla's futuristic product platforms could be handsomely rewarded in the long run if they buy the stock right now, despite its sky-high valuation. However, I think patient investors might get a cheaper entry point in the coming months. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $449,961!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,603!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $636,628!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon. See the 3 stocks » *Stock Advisor returns as of July 21, 2025
Yahoo
a day ago
- Automotive
- Yahoo
Elon Musk Thinks Tesla Will Become the World's Most Valuable Company. I Predict Its Stock Could Plunge by 70% (or More) Instead.
Key Points Elon Musk thinks autonomous vehicles and humanoid robots could make Tesla the most valuable company in the world one day. He might be right, but those product platforms are still years away from generating meaningful revenue, and Tesla's core business is faltering. To make matters worse, Tesla stock is trading at a sky-high valuation that could pave the way for a sharp correction. These 10 stocks could mint the next wave of millionaires › Tesla (NASDAQ: TSLA) is one of the world's largest manufacturers of electric vehicles (EVs), but its CEO, Elon Musk, is no longer focused on just selling cars. He's preparing the company for an autonomous future by directing its resources into its full self-driving (FSD) software, its Cybercab robotaxi, and its humanoid robot named Optimus. Musk believes Tesla will become the world's most valuable company by far if those product platforms are successful. But in the here-and-now, 74% of Tesla's total revenue still comes from its EV business, where sales are declining at an alarming pace. Musk held a conference call with investors last Wednesday to discuss Tesla's progress during the second quarter of 2025 (which ended on June 30). His comments suggest that it will be a long time before products like the Cybercab and Optimus are generating enough revenue to offset the struggling EV business, so here's why I predict Tesla stock could plunge by 70% (or more) in the meantime. Tesla's EV deliveries continue to sink Tesla is off to a rough start to 2025. It delivered 720,803 EVs during the first six months, which was a 13% decline compared to the same period last year. The drop in sales had a significant impact on the company's total revenue, which suffered a 9% year-over-year decline during the first quarter, followed by an accelerated drop of 12% in the second quarter. Competition is a big reason for Tesla's sluggish sales. While the company's Model Y remains the best-selling car in a handful of countries, consumers more broadly seem to be flocking to other brands. In Germany, for example, Tesla's sales crashed by 60% in June, despite EV sales growing by 8.6% across the country overall. In other words, Tesla is rapidly losing market share in Europe's largest car market. Affordability seems to be a major factor for consumers. China-based BYD sells its entry-level Dolphin Surf EV for around $26,000 in Europe, whereas Tesla's Model 3 (its cheapest EV) starts at $40,000. BYD's sales exploded fourfold in Germany during June, compared to the year-ago period. Fortunately, Tesla plans to release a low-cost EV to compete. It was reportedly designed on the flagship Model Y platform, minus all of its premium features to bring the price down. It just entered production, but only time will tell whether it's enough to pull Tesla's EV business out of its slump. Tesla's robotaxi business is still too small to offset weak EV sales Elon Musk believes the future of Tesla's car business is autonomous. In June, the company launched a supervised, invite-only version of its planned autonomous ride-hailing platform, using its passenger EVs (like the Model Y) with its FSD software installed. They are completing autonomous trips around Austin, Texas, right now, with a human in the passenger seat to keep an eye on things. The test lays a foundation for the rollout of the Cybercab, which is a purpose-designed robotaxi that won't have pedals or even a steering wheel. It will go into mass production next year, and Musk's goal is to have millions of them hauling passengers and even small commercial loads all day and night, earning revenue for Tesla around the clock. Regulators currently stand in the way of a broad robotaxi rollout. Tesla's FSD platform doesn't have approval for unsupervised use in any U.S. states right now, but Musk is hopeful that will soon change. In fact, he believes the company's robotaxi business could have enough coverage to serve half of the entire U.S. population by the end of 2025, likely using a mix of passenger EVs and early versions of the Cybercab. However, during a conference call with investors for the second quarter of 2025, Tesla's Vice President of artificial intelligence, Ashok Elluswamy, said only a "handful" of passenger EVs are currently deployed in Austin for the test program. He did say the operating region around Austin will soon expand tenfold, which should put more cars on the road, but it places the company significantly behind the competition. Alphabet's Waymo, for instance, is already completing over 250,000 paid autonomous trips every week across five U.S. cities completely unsupervised. The idea that Tesla can go from a handful of cars in Austin to serving half of the U.S. population within the next five months -- leapfrogging Waymo in the process -- feels very unrealistic. Tesla's sky-high valuation sets up a potential crash of 70% Tesla's earnings per share (EPS) sank by 18% year over year during the second quarter, which followed a 71% drop in the first quarter. Its trailing-12-month EPS now stands at $1.67, placing its stock at an eyewatering price-to-earnings (P/E) ratio of 180.7. That makes Tesla five times more expensive than the Nasdaq-100 technology index, which trades at a P/E ratio of 32.5. It's also three times more expensive than Nvidia -- one of the world's highest-quality and fastest-growing companies -- which trades at a P/E ratio of 54.3. If Tesla's earnings continue to shrink, which seems likely based on the state of its EV sales, then its P/E ratio is going to keep climbing unless its stock price plunges. As things stand today, Tesla stock would have to plummet 70% just for its P/E ratio to match Nvidia's (and even further to match the Nasdaq-100). I think that's a real possibility in the near term. The picture might look a little different for investors who are willing to hold Tesla stock for the long term. Dan Ives from Wedbush Securities thinks the company's robotaxi business presents a trillion-dollar opportunity, but that figure might be conservative if it winds up serving half the U.S. population eventually. Then there is the Optimus humanoid robot, which could be a hot product in every manufacturing facility and even in every household one day. It's still an early-stage product, but Tesla just announced version three, which irons out some of the kinks from the previous models. Musk thinks Tesla will be producing 1 million Optimus robots annually five years from now, and he previously said this product could deliver $10 trillion in revenue for the company over the long term. Investors who believe in Tesla's futuristic product platforms could be handsomely rewarded in the long run if they buy the stock right now, despite its sky-high valuation. However, I think patient investors might get a cheaper entry point in the coming months. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $449,961!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,603!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $636,628!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of July 21, 2025 Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Nvidia, and Tesla. The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy. Elon Musk Thinks Tesla Will Become the World's Most Valuable Company. I Predict Its Stock Could Plunge by 70% (or More) Instead. was originally published by The Motley Fool
Daily Tribune
2 days ago
- Automotive
- Daily Tribune
New low-cost Tesla Model Y coming
Tesla has announced plans to release a more affordable version of its Model Y SUV in an effort to revive flagging sales and reverse a decline in revenue. The new base variant will be a pared-down version of the existing Model Y rather than an entirely new model. Production is expected to begin around August or September this year. The move follows a promise made by Tesla CEO Elon Musk in January to introduce lower-cost models. The decision also comes as the U.S. prepares to phase out a $7,500 federal tax credit for electric vehicles, part of President Donald Trump's broader rollback of emissions mandates—adding urgency to Tesla's efforts to attract price-sensitive buyers. The carmaker's second-quarter earnings revealed a 16 percent fall in net income, down to $1.17 billion, driven by a 13 percent drop in vehicle deliveries, falling average selling prices, and rising operational costs. Notably, revenue from regulatory credits—an important source of income for Tesla—fell sharply by 51% year-on-year. The company reported a $154 million drop in these credits compared to the previous quarter alone. Tesla's performance in 2025 has been hampered by sluggish sales in China, one of its key markets. Growing competition from local electric vehicle manufacturers and ongoing tariff disputes have further complicated its position, despite the launch of an updated Model Y in the region. With no major new mainstream models on the immediate horizon, Musk is instead betting on the company's autonomous driving technologies. He expects future growth to come from services like the forthcoming robotaxi network and vehicles such as the Cybercab. Tesla has also made substantial investments in developing humanoid robots, which Musk sees as a long-term growth avenue.
Los Angeles Times
4 days ago
- Automotive
- Los Angeles Times
Tesla will start testing its robotaxis in the Bay Area, report says
Elon Musk may be bringing his robotaxis to the Bay Area soon to compete head to head with the other leaders in the driverless vehicle market. Tesla plans to launch an invite-only service in the Bay Area as soon as this weekend, according to a Business Insider report citing an internal company memo. The move comes about a month after Tesla robotaxis hit the roads in Austin, Texas. The vehicles, which are still being tested using human co-pilots to monitor their movements and help them get out of tough traffic situations, have drawn scrutiny for behaving oddly. Musk has touted the abilities and potential of his company's self-driving technology for years. The pressure to deliver on his promises has risen as Tesla's electric vehicle sales decline. The chief executive has increasingly banked the future of the company on a successful robotaxi service and developing other robotics, including the humanoid robot Optimus. On Thursday, Musk shared a post on his social media platform X, discussing how Tesla's latest self-driving software is able to take into account 10 times more parameters as it guides cars. In theory this should give vehicles more awareness of their surroundings to drive better. On Wednesday, the company reported a 16% year over year decline in automotive sales for the second quarter. Total revenue fell 12% to $22.5 billion. Musk faces a crowded field of competitors in the robotaxi space, including Waymo, which has operated in San Francisco since 2022 and began service in Los Angeles late last year. Waymo is owned by Google's parent company Alphabet. Amazon is testing its own robotaxi effort, Zoox, in several cities. In the U.S., Waymo is well ahead of the competition, having already completed millions of driverless rides. Its vehicles are operating without backup human co-pilots. As Tesla scrambles to catch up, the company also faces a lawsuit from the Department of Motor Vehicles accusing Tesla of leading buyers to believe that its vehicles can operate autonomously. A semi-autonomous feature known as Full Self-Drive mode is widely available in Tesla vehicles, but it cannot be used without a human in the driver's seat. Several incidents have been reported by Tesla drivers using FSD, leading to a National Highway Traffic Safety Administration investigation that begun last year. Musk has lofty ambitions for the feature, claiming that one day customers will be able to sleep in the back of their Tesla as it drives across the country. Musk has also advertised an Uber-like service in which Tesla owners can earn money by deploying their autonomous vehicle as a taxi. Last October, Musk unveiled a prototype for the Cybercab, a self-driving vehicle that lacks a steering wheel and pedals. Although he made promises that a fleet of Cybercabs would soon transport customers in several cities, the robotaxis currently operating in Austin are Model Y Teslas. Musk has not updated his timeline for launching the Cybercab. Tesla shares have fallen more than 16% this year following a series of setbacks for the company, including brand damage and plateauing interest in electric vehicles. Tesla fell out of favor with many potential buyers while Musk served a prominent role in the Trump administration earlier this year. His subsequent feuds with the president have further alienated customers, especially those who are liberal-leaning. On an earnings call this week, Musk warned that the company could have 'a few rough quarters,' partially in response to an expiring electric vehicle tax credit that makes it more affordable to purchase a new or used EV. The $7,500 credit will be eliminated at the end of September as dictated in President Trump's recent megabill. Tesla bull Dan Ives predicted that autonomous technology could be a $1 trillion venture for Tesla. Musk aims to have robotaxi services available to half the U.S. population by the end of 2025, Ives said in a note.
