Latest news with #robotaxi
Yahoo
an hour ago
- Business
- Yahoo
Prediction: Tesla Stock Is a Buy Before July 23
Tesla's access to capital gives it durable competitive edge. Its robotaxi business is proof that Tesla can afford to think big. These 10 stocks could mint the next wave of millionaires › Tesla (NASDAQ: TSLA) stock has been on a wild ride in 2025, with shares gyrating between $220 and $430 since the year began. And while many investors believe those shares are overvalued right now, the electric vehicle (EV) company's growth story remains compelling. In fact, there are two encouraging reasons to buy more shares before its next earnings call, which is scheduled to take place in late July. Profitably investing in electric car stocks has proven difficult over the decades. Over the last 10 years alone, at least 30 EV makers have gone under. The most common reason for those failures hasn't been a lack of good ideas or viable products. Instead, most of them simply ran out of money before they could turn the corner to profitability. The amount of capital and time necessary to bring an electric vehicle to market is far greater than most consumers realize. Rivian and Lucid Motors, for example, took roughly a decade to go from the idea stages to actually producing and selling their first models. Tesla was launched in 2003, but its first model, the Roadster, didn't reach customers until 2008 -- and that was a fairly rapid evolution compared to its competitors. Still, the long delays that plagued its Cybertruck prove that even a mature company can have difficulties getting a new model to market on time. Right now, Tesla is by far the largest pure-play EV company in North America. Its market cap is around $1 trillion. By comparison, Rivian and Lucid Group have a combined value of just $30 billion. Given that less than 10% of the vehicles on America's roads are electric, there's significantly more long-term growth on the way for EV companies. And in terms of having the raw financial power to not only survive, but to invest aggressively into new models and next-gen technologies, Tesla has few to no rivals. For example, it could raise $30 billion in new cash -- roughly the combined total market caps of competitors Rivian and Lucid Group -- by diluting shareholders by just 2.5%. That ability also gives debt holders more confidence, lowering the cost of debt for Tesla. In fact, its heavy capital advantages allow it to think big -- far bigger than any of its competitors could afford to think. And that leads directly to the other reason why investors should consider buying its shares now. If you ask famous tech-sector investor Cathie Wood what the future of Tesla is, she will doubtless reply, "robotaxis." The EV maker has already unveiled its upcoming robotaxi vehicle, the Cybercab, and announced plans to start operating its ride-hailing service in Austin, Texas, in June -- though it will launch not with Cybercabs, but with 10 Model Ys equipped with the latest version of its full self-driving software, which it has dubbed "FSD Unsupervised." Wood thinks that Tesla's robotaxi service will soon "proliferate" and achieve a stranglehold on the U.S. ride-hailing market. She thinks the service could send Tesla's stock price nearly 1,000% higher, contributing more than 90% of the company's revenues over time. I'm skeptical of Wood's optimistic timelines and projections. Tesla is currently facing sales declines in its core EV business, and if its own projected timelines are any indication, the robotaxi service will take many more years to build and scale than the company would like investors to believe. Still, the upside potential is clear. And given Tesla's capital advantages, it will have the time and funding necessary to bring this vision to fruition, even if it takes the better part of a decade to fully realize. Why buy Tesla stock before its next earnings report? Because you believe in the long-term vision of both EV sales growth and Tesla's new robotaxi business. While the road ahead will be difficult, some analysts think Tesla's robotaxi business could bring in $1.7 trillion by 2040. If you believe it can achieve that, Tesla's current $1 trillion market cap will look like a relative bargain, and there's no reason to wait to establish a position. Just be aware that in that context, Tesla should be a decade-long holding, not a short-term bet on the company's near-term prospects. 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 $350,426!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $38,129!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $651,049!* 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 May 19, 2025 Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Prediction: Tesla Stock Is a Buy Before July 23 was originally published by The Motley Fool 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
Yahoo
4 hours ago
- Business
- Yahoo
"He's Not Just Building a Chip—He's Taking the Whole System": Former Hedge Fund Manager Says Musk's Dojo Signals a Full-Stack AI Takeover
WASHINGTON, May 31, 2025 (GLOBE NEWSWIRE) -- Elon Musk didn't just build a faster chip. He built a new infrastructure — one that former hedge fund manager Enrique Abeyta believes could soon underpin the most powerful AI systems in the world. 'It's not about specs. It's about control,' Abeyta says. 'Musk is taking over every layer of the machine intelligence stack — from data, to chips, to real-world deployment.' In Abeyta's recent briefing, he explains that at the heart of this push is Dojo, a homegrown AI supercomputer designed to process visual data at massive scale — and train itself in real time. From Car Company to AI Empire Tesla's Dojo isn't just powering vehicles. It's being trained on 160 billion video frames per day from Tesla's global fleet — creating a loop where the machines not only drive, but learn how to drive on their own. 'With the latest software… Elon Musk's AI can already drive a car without any help from humans,' the report explains. And this summer, Tesla is expected to debut its robotaxi, a vehicle with no steering wheel, no pedals, and no human input. Musk Didn't Just Leave Nvidia. He Replaced It. After hitting roadblocks with Nvidia's chip supply, Musk pivoted fast — building his own chip in-house. That chip, which now powers Dojo, is reportedly 6x more powerful than Nvidia's best-selling model. 'I think this requires that we put a lot more effort on Dojo… I see a path to being competitive with Nvidia,' Musk said during a company update. It's not just about computing power — it's about sovereignty. According to Abeyta, 'Musk is removing every outside dependency he can.' AI as Infrastructure — Not Just Innovation Abeyta believes Musk's endgame isn't about one product — it's about owning the blueprint for the new machine economy. Morgan Stanley analysts suggest Dojo will be used in far more than cars: 'Dojo applications longer-term can extend beyond the auto industry. It can lay the foundation for vision-based AI models.' That means robots, drones, real-time logistics systems, and national defense platforms — all running on Musk's architecture. And support may already be lining up in Washington. 'President Trump just signed an executive order called 'Removing Barriers to American AI Innovation,'' Abeyta adds. 'He wants to accelerate the development of AI because he understands it's a matter of national security.' One of the companies powering Dojo's architecture is already 'expecting to receive billions of dollars from the Trump administration.' About Enrique Abeyta Enrique Abeyta is a former hedge fund manager who spent 25 years tracking macro-level transformations in capital markets, tech platforms, and global infrastructure. After overseeing nearly $4 billion in institutional capital, he now leads Breaking Profits, a research group dedicated to uncovering large-scale shifts in control, systems, and future-facing technologies. Media Contact:Derek WarrenPublic Relations ManagerParadigm Press GroupEmail: dwarren@ in to access your portfolio
Yahoo
13 hours ago
- Automotive
- Yahoo
Tesla stock higher as robotaxi 'golden age' begins with June 12 start date, Musk officially departing D.C.
Tesla (TSLA) stock is on the rise after two big pieces of news came overnight: a reported start date for robotaxi testing and CEO Elon Musk's official government departure. Per Bloomberg, Tesla is targeting a June 12 launch date for its robotaxi service in Austin, Texas, according to sources. The start date, which could change, the source added, is earlier than the late-June date Musk had previously announced. Early this morning, in a post on X, Musk confirmed that for "the past several days, Tesla has been testing self-driving Model Y cars (no one in driver's seat) on Austin public streets with no incidents," also confirming a similar Bloomberg report. Musk added that Tesla is planning its first "self-delivery" from the factory to a customer next month. Also fueling optimism in the auto sector is the US Court of International Trade putting a temporary pause on many of President Trump's wide-ranging tariffs, though sector tariffs on autos, aluminum, and steel remain. Tesla stock rose in early trade, but pared gains and closed slightly higher. "We interpret the set date as a sign that management is confident the software is ready for testing," Morningstar analyst Seth Goldstein wrote in a note. "The report said Tesla plans to test 10 robotaxis. Based on our estimate for robotaxis making 15 rides per day, this could allow Tesla to run at least 4,500 tests per month, if not more." Goldstein added that the amount of testing should allow Tesla to more quickly identify and fix any issues with the robotaxi service versus a smaller fleet. Musk has said previously that if all goes well, Tesla would expand the number of vehicles in the fleet for further testing. Musk and Tesla have bet the future of the company on self-driving and the ability for its cars to perform robotaxi services. Tesla's dedicated robotaxi — the Cybercab — is slated for a 2026 launch as well. "It's prudent for us to start with a small number, confirm that things are going well, and then scale it up," Musk said last week. In a post on X late last night, Musk revealed that his time in Washington was coming to an end. "As my scheduled time as a Special Government Employee comes to an end, I would like to thank President @realDonaldTrump for the opportunity to reduce wasteful spending," he wrote, in part. Musk's declaration comes after he posted earlier this week that he would he would be back "to spending 24/7 at work and sleeping in conference/server/factory rooms," being "super focused" on X, Tesla, and SpaceX. Tesla investors and analysts would like nothing more for Musk to focus on his businesses — and avoid Washington and political blowback altogether. "We believe the golden age of autonomous is now on the doorstep for Tesla with the Austin launch on June 12th kicking off this key next chapter of growth," Wedbush analyst Dan Ives wrote to investors, adding that it is now time for Musk to focus and steer "Tesla in a very positive direction with autonomous and robotics the future." Ives believes that while there will be technical setbacks on the path toward full autonomy, the opportunity could be worth $1 trillion for Tesla. "We see the true autonomous winner as Tesla and over the coming year more investors will recognize this AI vision," he wrote. Ives maintained his Outperform rating and $500 price target. Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram.
Yahoo
17 hours ago
- Business
- Yahoo
Uber shares hit pothole ahead of Tesla Robotaxi debut
Uber shares hit pothole ahead of Tesla Robotaxi debut originally appeared on TheStreet. Looks like Uber () got caught in a hit-and-run. The ride-sharing company's stock got rear-ended by investors on May 29 following a Wedbush report warning about competition from electric-vehicle maker Tesla's () very long-awaited robotaxi, which is tentatively set for June 12. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 Tesla CEO Elon Musk, who has been promising to deliver the robotaxi for over a decade, gave the world update on the project's status in a May 29 post on X, formerly Twitter, the social media site he bought for $44 billion. "For the past several days, Tesla has been testing self-driving Model Y cars (no one in driver's seat) on Austin public streets with no incidents," he wrote. "A month ahead of schedule. Next month, first self-delivery from factory to customer." Wedbush, which has a neutral rating and $85 price target on Uber, believes the Tesla robotaxi serves as a long-term threat to Uber's business model, according to The Fly. While management has executed well across mobility and delivery initiatives, the firm said, the lack of fresh catalysts coupled with shares trading at a premium to peers leaves limited upside if demand softens. The report left tread marks all over Uber's stock, with shares sliding 5.8% at last check. Other investment firms had a different view of the subject. More Tesla: Analyst sets eye-popping Tesla stock price target Fund manager has shocking Elon Musk and Tesla prediction Leaked Tesla policy should infuriate Tesla loyalists BMO Capital said that Uber's underperformance in light of the announced robotaxi launch date was expected. The firm believes shares are oversold at current levels, given Uber continues to expand internationally with the purchase of Denmark's largest taxi company, Dantaxi; continued positive trends for AV adoption in Austin; and ongoing innovation for both Mobility and Eats. BMO reiterated an outperform rating on "Top Pick" Uber, with a price target of $101. On May 23, Tigress Financial analyst Ivan Feinseth raised the firm's price target on Uber to $110 from $103 and affirmed a buy rating on the shares. Uber continues to benefit from strong ridership and delivery demand, ongoing innovation, and partnerships to drive substantial growth, the analyst said. Feinseth said he believes that autonomous vehicle opportunities will be a significant long-term upside is certainly no stranger to autonomous vehicles. In September, the company announced an expansion of its partnership with Alphabet's () Waymo to include Austin and Atlanta. Uber has been offering rides via Waymo in Phoenix since 2023. "Obviously, Waymo has a safety track record second to none. Consumers are loving the product," Uber CEO Dara Khosrowshahi said during the company's first-quarter earnings call in April. "The team on the ground is doing a terrific job in terms of repairs and cleaning and recharging the cars, etcetera, to make sure that the Waymo's are available for rides," he said. Uber also has a partnership with Chinese autonomous vehicle company WeRide. On May 5, Uber said it would expand to 15 cities over the next five years, including some in Europe as well as the United announcement came five months after Uber's first collaboration with WeRide, where the companies launched a robotaxi service in Abu Dhabi, Uber's first international offering. Khosrowshahi said last month that Uber would "love to work with" Musk's company, according to Business Insider, and revealed that he owns a Tesla. "Great car," Khosrowshahi said. Asked if he has tried full self-driving, Khosrowshahi responded, "It is delightful, but I have to take over every once in a while. It is an absolutely great product. Again, the car is a terrific car." Musk has been dismissive of Waymo's technology, telling analysts last month that the issue with the company's cars "is it costs way more money." "The car is very expensive, made in low volume," he said during the company's earnings call. "Teslas are probably cost 25% or 20% of what a Waymo costs and made in very high volume." However, Forbes Senior Editor Alan Ohnsman said Tesla's robotaxi "looks like a disaster waiting to happen." "Sometimes products launch when they're ready and sometimes products launch because someone just wants to put it out," he said. "In this case there is absolutely objectively no evidence that Tesla is ready for this step." Ohnsman said Musk believes that cost is the primary target for the robotaxi, adding that "your iPhone has a better camera than what Tesla is putting on its car and your iPhone is not driving in the street and doesn't risk killing people." "I know many experts who research autonomous vehicle tech and are very concerned about this," he said. "Trying to be very low cost out of the gate for a technology you have not yet mastered doesn't really seem like the best idea, but that's where we are with what Tesla is doing." Tesla did not immediately respond to a request for shares hit pothole ahead of Tesla Robotaxi debut first appeared on TheStreet on May 29, 2025 This story was originally reported by TheStreet on May 29, 2025, where it first appeared. 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
TechCrunch
a day ago
- Automotive
- TechCrunch
Elon Musk is lobbying lawmakers on driverless vehicle rules
In Brief Elon Musk may have stepped away from his duties as the lead of the Department of Government Efficiency and adviser to President Trump, but he's still active in D.C. circles. This time, he's on the other side, lobbying lawmakers on legislation related to autonomous vehicles, according to a report by Bloomberg that cited unnamed sources. Musk and others in his orbit have been calling members of Congress directly, according to Bloomberg. His efforts appear to be directed at a bill introduced May 15 called the Autonomous Vehicle Acceleration Act. Musk has bet much of Tesla's future on AI, robotics, and autonomous vehicles. He has frequently tied the company's value to its investment and eventual commercialization of autonomous vehicles. And next month, Tesla is expected to launch a small and geofenced robotaxi service in Austin, Texas. Tesla also wants to eventually roll out autonomous vehicles — branded Cybercabs — that don't have a steering wheel or pedals. But today there is not clear federal rules or standards to allow such a vehicle to operate at scale.
