Tesla Is An Ai Stock

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Tesla Is An Ai Stock

Tesla Is Now Viewed As An AI Stock

Something strange is going on with Tesla stock. The company announced one of its best delivery quarters. But the stock declined by more than 7% in a single day. A few days later, driverless taxi service was launched in a new city. This sent the stock price higher.

These things tell us that people have stopped viewing Tesla as a car company. Instead, people are now viewing it as an AI company.

Robotaxi Was Launched In Miami

The Tesla report showed that around 480126 vehicles were delivered in Q2. That's a jump of 25% on a y/y basis. The energy division also showed strong results. However, the report failed to impress the investors.

The news that actually sent the share prices higher was the launch of robotaxi service in Miami. This clearly tells us that the investors view the company differently.

This shift was actually spearheaded by Elon Musk when he announced Optimus robot, Cybercab, and similar initiatives. Now, the investors are less interested in the cars and more about other stuff.

Looking ahead, Tesla will need to succeed as a robotics and autonomy company. The car business is just a mere bridge and is no longer the destination.

Also, Tesla is facing competition from Chinese car makers like BYD. Also, the robotaxi is only available in 3 cities and is not a viable business for now.

It is safe to say that Tesla is going through a big change. So, if you are thinking of buying Tesla stock by viewing it as an EV company, then think again!

Considering all of these things, caution is needed when buying the Tesla stock. In fact, a big part of the upside from robots and AI is already baked into the stock price. If the company fails to make a big breakthrough in AI or robotaxis, the stock price will crash.

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