Latest news with #selfdrivingcars
Yahoo
3 days ago
- Automotive
- Yahoo
Elon Musk Thinks Tesla Will Be the World's Most Valuable Company, but This Huge Problem Could Send Its Stock Plunging by 70% Instead
Self-driving cars and humanoid robots are key to Musk's bullish vision for Tesla, but the company has to overcome major challenges first. Tesla's electric vehicle sales are plummeting, and continued weakness could lead to massive losses for the stock. These 10 stocks could mint the next wave of millionaires › Tesla (NASDAQ: TSLA) stock hit a new record high in Dec. 2024 on the back of President Trump's election win. Investors speculated that Trump's focus on deregulation could speed up the company's ability to commercialize its autonomous robotaxi and humanoid robot opportunities. In fact, CEO Elon Musk believes those two businesses will eventually make Tesla the world's most valuable company one day -- potentially even more valuable than the next five companies combined. Today, those five companies are Microsoft, Apple, Nvidia, Amazon, and Alphabet, and they have a combined market capitalization of $13.6 trillion. But there's a problem: Tesla is worth only $1.2 trillion as of this writing, and most of its revenue still comes from selling electric vehicles (EVs), which are seeing plummeting demand. That's bad news for Musk's ambitious forecast in the near term, and here's why it could lead to a collapse of over 70% for Tesla stock instead. Back in 2023, Musk told investors Tesla could grow its EV production 50% annually for the foreseeable future. Deliveries hit a record high of 1.81 million vehicles that year, a year-over-year increase of 38%. But in 2024, deliveries shrank by 1% to 1.79 million. Simply put, Tesla can't grow production 50% per year if sales aren't keeping up. Unfortunately, the situation appears to be getting worse: Deliveries plunged even further in the first quarter of 2025, this time by 13%. And there could be an even sharper decline in the second quarter if the available data from April is accurate. In the United Kingdom, new Tesla EV registrations fell 62% year over year in April. There were also sharp declines across Europe -- registrations collapsed 81% in Sweden, 74% in the Netherlands, 67% in Denmark, and 59% in France. Analyst estimates indicate Tesla might deliver as little as 350,000 cars during the second quarter, or a year-over-year drop of more than 20%. The problem seems to be specific to Tesla because EV sales overall soared 28% across Europe in April. Chinese automaker BYD saw a staggering 359% increase in sales across the region, and it sold more cars than Tesla for the first time ever during the month. BYD is known for its ultra-affordable models, like the Seagull, which sells for under $10,000 in China. Tesla simply can't compete at that price point. Musk's political affiliations might also be damaging the brand, mainly because of his work within the Trump administration's Department of Government Efficiency. Musk helped slash thousands of federal jobs and shuttered entire agencies. According to the most recent CNBC All-America Economic survey, around half of Americans now have a negative view of Musk, while only 36% view him positively. That public opinion flowed through to Tesla with 47% of respondents expressing a negative view of the company. Last October, Tesla unveiled its long-awaited Cybercab robotaxi. It has no pedals or steering wheel because it's designed to run entirely on the company's Full Self-Driving (FSD) software. Musk wants to build a ride-hailing network in which Cybercabs can transport passengers and earn revenue for Tesla around the clock. But the unsupervised version of Tesla's FSD isn't approved for use on public roads yet. Musk says the company could offer paid autonomous rides starting in June of this year, but he doesn't expect true scale to be achieved until the second half of 2026. That places Tesla significantly behind the likes of Waymo, which is already completing over 250,000 paid autonomous trips every single week across Los Angeles, San Francisco, Phoenix, and Austin. Catching up to Waymo won't be easy because it has partnered with Uber Technologies, which operates the world's largest ride-hailing network with 170 million monthly users. It could take Tesla years to achieve that level of scale, especially if it builds its own mobility network from scratch. But Musk is eyeing another major opportunity: the Optimus humanoid robot. He says it could generate a staggering $10 trillion in revenue over the long term. Tesla will reportedly manufacture thousands of them this year to use inside its factories, but Musk predicts the company could be producing millions of them annually by 2029 or 2030. Optimus could eventually be used for the dangerous jobs and repetitive tasks that humans don't want to do, so there is an enormous addressable market across the business and consumer sectors. While Musk claims humanoid robots will outnumber humans by 2040, keep in mind the CEO is known for bold predictions that don't always come to fruition. If products like the Cybercab, FSD, and Optimus are a success, Tesla could certainly become the world's most valuable company. But it's facing a serious problem right now because its stock is trading at an eyewatering price-to-earnings (P/E) ratio of 186.5. For some perspective, Nvidia, Microsoft, Amazon, Apple, and Alphabet trade at an average P/E ratio of just 32.2: Tesla's earnings per share (EPS) plunged 71% during the first quarter of 2025, whereas each of the other five companies generated EPS growth in their most recent quarters. Tesla's premium valuation makes even less sense from that angle because investors typically assign a higher P/E ratio to companies that are growing quickly. Tesla stock would have to plummet by 76% just for its P/E ratio to trade in line with Nvidia's, and that is a legitimate risk. Despite the long-term potential of products like the Cybercab and Optimus, 72% of Tesla's revenue still comes from selling EVs, and the pace at which sales are shrinking will almost certainly drive an ongoing collapse in the company's EPS for the foreseeable future. Remember, based on Musk's optimistic predictions, it could be years before the Cybercab and Optimus businesses are generating enough revenue to offset the weakness in Tesla's EV sales. As a result, there is little hope the company will grow to exceed the combined value of Nvidia, Microsoft, Amazon, Apple, and Alphabet anytime soon. I believe the stock is destined for a sharp decline instead, bringing its P/E ratio in line with those of its big-tech peers. 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. 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The Motley Fool recommends BYD Company and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Elon Musk Thinks Tesla Will Be the World's Most Valuable Company, but This Huge Problem Could Send Its Stock Plunging by 70% Instead was originally published by The Motley Fool
Al Bawaba
26-05-2025
- Automotive
- Al Bawaba
Uber rolls out self-driving cars in Saudi Arabia
Published May 26th, 2025 - 09:24 GMT ALBAWABA – Uber, the American multinational transportation company that provides ride-hailing, courier services, food delivery, and freight transport, plans to roll out self-driving cars in Saudi Arabia. The company will create nearly 30,000 job opportunities in the country. Also Read Uber to launch robotaxi service in Europe in 2026 Uber self-driving cars in Saudi Arabia Uber has signed major deals with leading Saudi companies as it aims to roll out its self-driving cars in the Kingdom. As the company expands its autonomous driving ambitions, it will also contribute by creating 30,000 job opportunities in Saudi recently signed a deal with Abdul Latif Jameel, a family-owned, diversified business founded in Saudi Arabia in 1945 by the late Sheikh Abdul Latif Jameel. Uber will provide expanded services in Saudi Arabia through a next-generation fleet operations platform. The partnership will focus on electric, shared, and autonomous services. Notably, Uber is currently working with around 18 autonomous vehicle partners globally. As the company expands its autonomous driving ambitions, it will also contribute by creating 30,000 job opportunities in Saudi Arabia. (Shutterstock) Uber and Abdul Latif Jameel will together establish a mobility fleet and create 30,000 jobs for Saudi Jameel, Vice-Chairman of Abdul Latif Jameel group, stated: 'Equally important is how this agreement will help empower Saudi youth through the creation of job opportunities, while contributing to the Kingdom's long-term prosperity. Saudi Arabia is primed to be a key destination for urban transformation and the integration of AVs in the ecosystem. Abdul Latif Jameel, in collaboration with Uber, will play a pivotal role in accelerating the deployment of AVs, supporting local fleet operations.' "We're thrilled to collaborate with Abdul Latif Jameel to advance and accelerate a future of mobility that is electric, shared, and autonomous in the country. Our goal is to make Uber the best platform for AV technology and continue to introduce both autonomous and human-driven mobility solutions to help people get where they need to go, effortlessly,' said Dara Khosrowshahi, CEO of Uber. © 2000 - 2025 Al Bawaba (
Forbes
24-05-2025
- Automotive
- Forbes
Driverless Tractors Set To Dominate Farming Industry, Say Experts
The jury is still out on self-driving cars for humans on public streets, though every day we are getting closer. But the driverless tractor market is booming, with agriculture-heavy areas like India and China leading the charge. It's projected to grow from $1.5 billion to $13-15 billion by 2033. Also known as autonomous tractors, these machines are engineered to operate without a driver onboard, the same as automobiles with the same tech. Using GPS, sensors, radar, and AI-powered systems, they navigate fields, steer, control speed, brake, and even execute complex farming tasks independently. But these machines go beyond basic automation. By integrating artificial intelligence, computer vision and data analytics, driverless tractors can conduct soil tests, optimize seed selection, execute precise planting, and create detailed field maps—redefining what's possible in agriculture. In countries like India, where the agricultural workforce is projected to drop to 26.8% by 2050, labor scarcity is forcing farmers to adopt technology. Urban migration and higher labor costs are accelerating the shift to automated solutions, with driverless tractors emerging as one of the most practical tools on offer. Driverless tractors not only reduce dependency on manual labor but also promote eco-friendly practices. With lightweight builds that reduce soil compaction and the capacity to operate continuously for up to 30 hours, these machines dramatically boost productivity. Built-in safety systems—like sensors and radar—further enhance their reliability in the field. It's not a new concept, either - here is a timeline of developments. Governments around the world are backing the movement toward automation in agriculture. Subsidies, loan forgiveness and incentive programs are making it easier for farmers—especially in developing economies—to invest in driverless technology. Autonomous tractors are gaining momentum across key U.S. agricultural regions,as well, where large-scale farming meets labor shortages. In the Midwest, states like Iowa, Illinois, and Nebraska with their the vast, uniform fields make these machines highly effective for crops like corn and soybeans. On the West Coast, particularly in California and Washington, driverless tractors are increasingly used in vineyards and orchards, driven by the need for precision and limited labor. Meanwhile, Arizona serves as a testing ground for autonomous farming technologies due to its open landscapes and supportive regulations. These examples highlight how geography, crop types, and labor challenges shape the growing adoption of autonomous tractors, with broader use expected as the technology matures and becomes more accessible.
Daily Mail
21-05-2025
- Automotive
- Daily Mail
Labour delays self-driving cars on Britain's roads by 12 months
Self-driving cars will not be allowed on Britain's roads next year after Labour delayed the introduction of legislation for driverless vehicles. While various autonomous vehicle trials have been taking place in the UK for several years, there remains a legal requirement for a safety driver to be sat at the wheel to take back control at any moment. Under proposals laid out by the previous government, this was due to change in 2026 when laws were due to be put in place to grant unmanned vehicles access to our roads. However, the Department for Transport has confirmed provisions for this have been pushed back to 'the second half of 2027' at the earliest - a year later than the Tory Government had promised. 'We are working quickly and will implement self-driving vehicle legislation in the second half of 2027,' a DfT statement issued to the BBC said. 'We are also exploring options for short-term trials and pilots to create the right conditions for a thriving self-driving sector.' The Department for Transport has confirmed that legislation to allow self-driving cars onto Britain's roads has been pushed back to 'the second half of 2027' at the earliest Speaking to This is Money, a DfT spokesman added: 'Self-driving vehicles have the potential to build an industry worth £42billion and provide 38,000 jobs by 2035, helping us deliver our Plan for Change by creating jobs to put money in the pockets of hardworking people and drive investment to secure Britain's future.' It said it is now shifting focus to 'future pilots' of autonomous vehicles that allow 'removal of the safety driver'. The news comes a year after that the Automated Vehicles (AV) Act became law, receiving Royal Assent on 20 May 2024. It sets out the minimum safety threshold self-driving vehicles must achieve, which is a level 'at least as high as careful and competent human drivers'. It also outlines that AVs will need to pass rigorous safety checks before being allowed on our roads. The act allows for trials of automated vehicle technology in line with the government's 'world leading' Code of Practice. However, the DfT admits the code will need to be reviewed to ensure it remains fit for purpose and can accommodate the safe deployment of trials and pilots of self-driving services in the future. While the act promised to deliver 'the most comprehensive legal framework of its kind worldwide' for the safe deployment of self-driving vehicles in Britain, secondary legislation is still required in order to iron out liability issues if crashes occur and cybersecurity risk. The Law Commission has already recommended that 'users' of driverless cars should not be held responsible for accidents or injuries caused when their vehicle is in self-driving mode. Instead, liability should lie entirely at the hands of the vehicle manufacturer or provider of the self-driving technology, it said. The Parliament's Transport Select Committee in 2023 warned that the introduction of driverless cars would come with many risks, including worsening congestion, and new dangers for 'less skilled' human drivers. A YouGov survey of 4,087 Britons conducted earlier this month found that a mere 3 per cent of the public said they would prefer being transported by a self-driving car over one piloted by a human driver. Two in five said they would want to be driven by another person, and half would rather do the driving themselves. While there is little preference for the driverless car option across social groups, the poll identified a marked difference in the driver versus passenger preference; while most men and over 25s (51 per cent and 64 per cent respectively) would prefer to at the controls, these figures fall to just 39 per cent among women and 26 per cent for 18-24 year olds. Concerns regarding self-driving vehicles likely result for the number of high-profile accidents - sometimes fatal - and near misses involving autonomous cars in the US.
