Robotaxis Will Save Tesla Stock

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Robotaxis Will Save Tesla Stock

Robotaxis Will Save Tesla Stock?

The current valuation of Tesla stock looks very attractive, and even its market cap is above $1 trillion. However, the question that's on everyone's mind is related to robotaxis and how it will influence Tesla's stock price.

The company is trading at 180x of its earnings, which is quite high. Meanwhile, other car manufacturers are only in single or double digits at best.

Robotaxis: The Future Of Transportation

So in a sense, we can say that Tesla is valued as if it's a technology company and not a car company. That's why the question of robotaxis is now more relevant than ever for Tesla.

What is a Robotaxi? It is an AI-powered self-driving car that takes the passengers from point A to B. The key benefit of this technology is that it doesn't require any human input.

However, the robotaxi trials show that a backup human driver is also present in the car. This is required for regulatory issues and kind of undermines the idea of a car driving itself.

But despite all the challenges, the robotaxis are the future of transportation, and we can't deny that! According to Elon Musk, this tech will start to show an impact on Tesla's revenue in the 2030s.

So, Yes! The robotaxis have the potential to save the Tesla stock. But this tech is still in its early stages, and it will take 10 or more years for its effect to finally kick in.

But, will you be able to wait for that long and hold the Tesla stock? That's a question that everyone should ask themselves when it comes to buying Tesla stock.

There's no doubt that the Tesla stock looks very overvalued when compared with other car manufacturers. Also, the Robotaxi initiative will take a long time, which means caution is needed before buying the Tesla stock.

So, the bottom line is that you should closely watch the Tesla stock and also keep track of any new developments.

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