{"id":115653,"date":"2024-10-18T18:37:47","date_gmt":"2024-10-18T11:37:47","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=115653"},"modified":"2024-10-18T18:37:47","modified_gmt":"2024-10-18T11:37:47","slug":"robotaxi-flop-leaves-teslas-lofty-stock-multiple-looking-shaky","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=115653","title":{"rendered":"Robotaxi Flop Leaves Tesla\u2019s Lofty Stock Multiple Looking Shaky"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div>\n<p>(Bloomberg) &#8212; Tesla Inc.\u2019s reveal of its much-hyped self-driving car last week left investors underwhelmed and sent shares plunging. The disappointment also left the Street questioning the shares\u2019 premium valuation.<\/p>\n<p>Most Read from Bloomberg<\/p>\n<p>The so-called robotaxi is a dazzling promise that has been crucial to keeping Tesla\u2019s stock at lofty heights. It\u2019s also a key part of Elon Musk\u2019s vision for the artificial-intelligence driven future of his company. But with numerous questions remaining about technical details of the vehicles and when they will be available, the shares \u2014 trading at 75 times forward earnings \u2014 are looking expensive to some.<\/p>\n<p>\u201cThis is still a carrot on a string,\u201d said Steve Sosnick, chief strategist at Interactive Brokers. \u201cHow many new investors will be willing to buy this expensive stock when the core auto business is slow and the company did not show how it will bring the rapid growth in the future?\u201d<\/p>\n<p>Tesla investors have a lot riding on the success of autonomous vehicles. Bernstein analyst Toni Sacconaghi estimates that Tesla\u2019s core electric-vehicle business is likely worth less than $200 billion, suggesting its market capitalization reflects a value of about $600 billion for other endeavors, such as the robotaxi and the Optimus humanoid robot.<\/p>\n<p>The shares are down 7.5% since the splashy October 10 event, but that\u2019s barely dented the premium. Tesla is by far the most expensive stock in the Magnificent 7, and dwarfs the mid-single-digit multiples of traditional carmakers like General Motors Co. and Ford Motor Co. It\u2019s also much pricier than the Nasdaq 100\u2019s multiple of 26 times forward earnings.<\/p>\n<p>\u201cWhat worries me the most about Tesla\u2019s valuation is how do you grow into a 75-times price-to-earnings multiple,\u201d said Interactive Brokers\u2019 Sosnick. \u201cThe only way you can is if you have a world-changing technology, which they once did, but the current valuation requires a similarly major leap forward.\u201d<\/p>\n<p>Last week\u2019s glitzy event failed to inspire confidence that such a major leap is coming anytime soon. In the meantime, slowing demand for electric vehicles around the world and rising competition are hitting its sales and profits.<\/p>\n<p>\u201cTesla\u2019s robotaxi event was long on vision, and short on immediate deliverables or incremental revenue drivers,\u201d Bernstein\u2019s Sacconaghi wrote in a note. The company showed prototypes of a two-door sedan called the Cybercab, a concept van and an updated version of Optimus, but lacked key details that investors had wanted to see. Those included how Tesla will move from selling advanced driver-assistance features to fully autonomous vehicles, its path to regulatory approval, and evidence that it is comfortably ahead of rivals like Alphabet Inc.\u2019s Waymo.<\/p>\n<p><button class=\"link caas-button readmore-button-finance collapse-button readmore-button-class\" data-ylk=\"elm:readmore;slk:Story continues\"><span class=\"readmoreButtonText\">Story continues<\/span><\/button><\/p>\n<p>There were other kinks, too. The robotaxi will \u201cprobably\u201d go into production only in 2026. And Bloomberg reported earlier this week humans remotely controlled some capabilities of the robots at the event.<\/p>\n<p>Sacconaghi noted that Tesla continues to lag well behind competitors when it comes to self-driving technology, and expressed concern that even if it becomes the first to achieve full self-driving, rivals will likely follow soon.<\/p>\n<p>\u201cWe do not believe the event provided sufficient detail to assuage our concerns, and believe the same is likely true for many investors,\u201d he wrote.<\/p>\n<p>To be sure, there are some that are still willing to give Tesla the benefit of the doubt.<\/p>\n<p>\u201cFirst and foremost, Tesla is a Musk company,\u201d said Nicholas Colas, co-founder at DataTrek Research. \u201cAs long as Musk is alive and generating ideas and having success in other businesses, people will say if this guy can have a rocket return to a pinpoint, of course he can solve self-driving.\u201d<\/p>\n<p>Still, after a 70% rally ahead of the robotaxi event, things are looking challenging for Tesla shares.<\/p>\n<p>The next catalyst to watch is third-quarter results, due next week, when analysts expect the company to report a 10% decline in profits from year-ago levels.<\/p>\n<p>\u201cIn the near-term, what would worry us will be any substantial weakness in car sales, which is still the bread and butter for Tesla,\u201d said Brian Mulberry, client portfolio manager at Zacks Investment Management.<\/p>\n<p>Tech Chart of the Day<\/p>\n<p>Nvidia Corp. shares are roaring back after the chipmaker\u2019s chief executive officer Jensen Huang successfully calmed investor concerns about product delays and its long-term growth prospects. The company\u2019s market capitalization of around $3.36 trillion is inching closer to Apple Inc.\u2019s roughly $3.53 trillion as the battle for the world\u2019s most valuable company heats up again.<\/p>\n<p>Top Tech Stories<\/p>\n<ul class=\"caas-list caas-list-bullet\">\n<li>\n<p>Netflix Inc. added more than 5 million customers in the third quarter and eclipsed Wall Street\u2019s expectations on every major financial metric despite a new programming slate constrained by last year\u2019s strikes in Hollywood.<\/p>\n<\/li>\n<li>\n<p>Sales of Apple Inc.\u2019s newest iPhones in China are up 20% in their first three weeks compared with 2023\u2019s model, a positive sign for a device that struggled this year to gain traction in the world\u2019s largest smartphone market.<\/p>\n<\/li>\n<li>\n<p>Alphabet Inc.\u2019s Google is moving the team behind its Gemini AI assistant app to its DeepMind research lab, continuing a plan to consolidate the company\u2019s various groups working on artificial intelligence.<\/p>\n<\/li>\n<li>\n<p>Taiwan Semiconductor Manufacturing Co. shares hit a record high after the chipmaker topped quarterly estimates and raised its target for 2024 revenue growth, allaying concerns about global chip demand and the sustainability of an AI hardware boom.<\/p>\n<\/li>\n<\/ul>\n<p>Earnings Due Friday<\/p>\n<p>&#8211;With assistance from Subrat Patnaik.<\/p>\n<p>Most Read from Bloomberg Businessweek<\/p>\n<p>\u00a92024 Bloomberg L.P.<\/p>\n<\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/finance.yahoo.com\/news\/robotaxi-flop-leaves-tesla-lofty-092352758.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Bloomberg) &#8212; Tesla Inc.\u2019s reveal of its much-hyped self-driving car last week left investors underwhelmed and sent shares plunging. The disappointment also left the Street questioning the shares\u2019 premium valuation. &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=115653\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-115653","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/115653","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=115653"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/115653\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=115653"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=115653"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=115653"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}