Tesla Stock A Buy Or No

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Tesla Stock A Buy Or No

Tesla Stock: Should You Buy It?

Tesla was talking a lot about the Cybertruck, the AI-driving taxi. But now, it has become a reality and is no longer something imaginary only shown on a stage.

The company has rolled out its service in Texas and many other states. This is an interesting moment, as Tesla has been talking about it for years.

So, is it a good time to buy Tesla stock? To answer that, we must take a closer look at what Tesla is doing.

Robotaxi Is Now A Reality

For several years, Tesla was chasing opportunities that had to materialize. There were talks about the Optimus robot, Robotaxi, and AI.

Now, the Robotaxi is a reality and is available in 6 US states. The company has also started the production of Cybercab. There are reports that the production of the Optimus robot will start soon. So, it is clear that Tesla is now getting closer to the future it was talking about.

Now, the big question is whether Tesla can turn its Cybercab business into a high-return business. For now, the rollout of these vehicles is still limited.

The National Highway Traffic Safety Administration is also examining the self-certification of Tesla. They are also investigating whether these vehicles comply with the safety standards. So, the company will need to navigate safety, regulations, insurance, and several others to become successful.

Another thing to remember is that Tesla is spending heavily. This has also started to show its impact on free cash flow, which turned negative in Q2.

Tesla's balance sheet still has around $44 billion with almost no debt. So, the company can afford to spend heavily for a while.

However, what's troubling is that it has a P/S ratio of 12.1 with a market cap of around $1.1 trillion. To give you some perspective, the same ratio of General Motors is 0.5.

For now, the better strategy is to watch the Tesla stock rather than buying it. The company is making progress, but robotaxis, robots, and other stuff will need years before it can start to show some real impact.

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