Latest news with #autonomousDriving
Yahoo
a day ago
- Automotive
- Yahoo
Robotaxis Could Redefine Tesla or Rattle Its Stock
Tesla's (NASDAQ:TSLA) much-anticipated robotaxi pilot, set to roll out June 22 in Austin, is pivotal for the company's next growth chapter. Success could redefine its revenue model; failure could dent valuation and long-term prospects. Jacob Falkencrone, Saxo's global head of investment strategy, warns that the launchElon Musk's next trillion-dollar chapteris as much about regulatory navigation as true autonomy. Roughly ten Model Y robotaxis running Tesla's Full Self-Driving software will operate in geo-fenced zones under remote human oversight, reflecting cautious, phased deployment rather than a turnkey self-drive revolution. Skepticism lingers amid Democratic lawmakers urging a delay until new Texas safety laws kick in on September 1, and an ongoing NHTSA probe into Tesla's autonomous systems. Historically, Tesla share prices spike on hype and retreat on reality. A smooth pilot could position Tesla as a mobility services leader, slashing urban travel costs by up to 70% and potentially eclipsing its core car-sales business. Conversely, any misstepsregulatory pushback, tech hiccups, or safety incidentscould spook investors and create tactical buying windows. Early user feedback, regulatory responses, and incident reports will be key barometers. Investors should watch those signals closely to gauge whether robotaxis truly deliver transformative upside or morph into another Musk-driven mirage. This article first appeared on GuruFocus.
Yahoo
a day ago
- Automotive
- Yahoo
Robotaxis Could Redefine Tesla or Rattle Its Stock
Tesla's (NASDAQ:TSLA) much-anticipated robotaxi pilot, set to roll out June 22 in Austin, is pivotal for the company's next growth chapter. Success could redefine its revenue model; failure could dent valuation and long-term prospects. Jacob Falkencrone, Saxo's global head of investment strategy, warns that the launchElon Musk's next trillion-dollar chapteris as much about regulatory navigation as true autonomy. Roughly ten Model Y robotaxis running Tesla's Full Self-Driving software will operate in geo-fenced zones under remote human oversight, reflecting cautious, phased deployment rather than a turnkey self-drive revolution. Skepticism lingers amid Democratic lawmakers urging a delay until new Texas safety laws kick in on September 1, and an ongoing NHTSA probe into Tesla's autonomous systems. Historically, Tesla share prices spike on hype and retreat on reality. A smooth pilot could position Tesla as a mobility services leader, slashing urban travel costs by up to 70% and potentially eclipsing its core car-sales business. Conversely, any misstepsregulatory pushback, tech hiccups, or safety incidentscould spook investors and create tactical buying windows. Early user feedback, regulatory responses, and incident reports will be key barometers. Investors should watch those signals closely to gauge whether robotaxis truly deliver transformative upside or morph into another Musk-driven mirage. This article first appeared on GuruFocus.
Bloomberg
a day ago
- Automotive
- Bloomberg
Musk's Tesla Prepares to Launch Robotaxi Service
As Tesla prepares to launch its robotaxi service in Austin, Kara Kockelman, Professor of Transportation Engineering at the University of Texas, discusses the cost savings that autonomous driving can bring to the roads. She joins Caroline Hyde on 'Bloomberg Tech.' (Source: Bloomberg)
Yahoo
2 days ago
- Automotive
- Yahoo
Prediction: This Artificial Intelligence (AI) Stock Could Be the Biggest Winner of the Second Half of 2025
One "Magnificent Seven" stock that has underperformed its peers this year is Tesla. While Tesla's core car business is losing momentum, all eyes seem to be on the company's upcoming robotaxi launch. A bullish narrative surrounding robotaxi has fueled some recent excitement in Tesla stock as of late, and I think this is just the beginning a new months-long breakout. These 10 stocks could mint the next wave of millionaires › As of June 12, shares of electric vehicle (EV) manufacturer Tesla (NASDAQ: TSLA) have dropped by 21% on the year. On the surface, this doesn't exactly inspire confidence. However, over the last couple of weeks, Tesla stock has started to witness some new life -- save for a brief sell-off following a fleeting tiff between Elon Musk and President Trump. While Tesla's core EV business continues to struggle, I think shares are poised for an epic comeback during the second half of the year. Let's explore a major update coming to Tesla soon and understand how this could fuel shares to new all-time highs. Is now the time to pounce on Tesla stock? Read on to find out. Tesla investors understand that Elon Musk's vision for the company is not just to sell the most EVs. Rather, Musk has been focusing on various elements of artificial intelligence (AI) and how the technology can be used to transform Tesla. Right now, the most immediate AI use case for Tesla is commercializing autonomous driving software. Tesla plans to leverage self-driving software across two applications: offering it as a feature in its cars and building a fleet of robotaxis for ride-hailing services. While the initial launch date for the Tesla Robotaxi was rumored to be June 12, more recent commentary from Musk himself suggests that the first rides will take place in Austin, Texas, later this month (potentially between June 22 and 28). A successful robotaxi launch represents a transformative shift in Tesla -- from primarily a car manufacturer to more of an AI-powered services provider disrupting ride-hailing, car rentals, or logistics businesses. When it comes to popular stocks in the AI realm, I'm sure cloud hyperscalers Microsoft, Alphabet, and Amazon come to mind. Moreover, given Nvidia's ongoing rollout of its new Blackwell GPU architecture, the semiconductor king appears well positioned for further growth, too. Among Microsoft, Alphabet, and Amazon, these three cloud computing giants are forecast to spend nearly $260 billion in AI capital expenditures (capex) just this year. On the one hand, these companies would not be investing so aggressively if demand was not robust for their respective AI services. But on the other side of the equation, it takes time to build out AI data centers and complete sophisticated AI infrastructure projects. In my view, investors might want to see some tangible return on investment in the form of accelerating revenue and widening profit margins from this rising capex before doubling down on their positions. In addition, the biggest question mark surrounding Nvidia is the company's exposure to China and how ongoing tariff negotiations could impact the company's market presence across Asia. Although Tesla is not completely immune to tariffs and its core EV business is decelerating, recent price action suggests that investors view these road bumps as near-term headwinds. The primary catalyst fueling Tesla stock right now seems to be the robotaxi launch. Wide-scale adoption of autonomous driving technology could be a game changer for Tesla. At its core, the company's self-driving technology is a software product -- meaning it carries higher profit margins than the traditional automobile business. Moreover, both the robotaxi service and the autonomous driving feature have the potential to be sources of more recurring revenue for Tesla -- as opposed to a one-time purchase of a vehicle. In turn, longtime Tesla investor Ron Baron forecasts that autonomous driving services could add billions in annual cash flow to Tesla. Ark Invest CEO Cathie Wood and equity research analyst Dan Ives of Wedbush Securities are in the same boat as Baron, going as far as to project that the robotaxi could be Tesla's path to achieving trillions in additional value for shareholders. Although Tesla stock has steadily been climbing over the last month-and-a-half, I would caution investors from buying into the idea that now is an opportunity to take advantage of a dip. Right now, I think Tesla stock is largely trading on a bullish narrative surrounding the launch of the robotaxi. I'd go as far as to say that as the launch gets underway and Tesla begins to scale the robotaxi operation, shares could begin to rise sharply. However, smart investors remember that Musk himself has made it explicitly clear that the robotaxi will not be a meaningful financial contributor for Tesla for at least a year. Even if Tesla stock soars during the second half of 2025, I think it will be largely driven by momentum and excitement. In my view, that style of price movement is aligned with swing trading as opposed to long-term investing. So, while I do think Tesla stock will outperform its "Magnificent Seven" peers over the next six months, I actually think investing in the stock is a bit risky at the moment. A more prudent approach to an investment in Tesla is to see how the Robotaxi business scalers in the coming months while learning how impactful this new segment is for the entire business. From there, investors should get a better sense of what the robotaxi could actually be worth to help assess if Tesla's valuation is reasonable. 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. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $373,766!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $37,140!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $658,297!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of June 9, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Alphabet, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Microsoft, Nvidia, and Tesla. The Motley Fool 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. Prediction: This Artificial Intelligence (AI) Stock Could Be the Biggest Winner of the Second Half of 2025 was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Automotive
- Yahoo
China's Baidu eyes robotaxi expansion to Singapore and Malaysia
By Linda Lew (Bloomberg) – Baidu is planning to launch its Apollo Go robotaxi service in Singapore and Malaysia as early as this year, according to a person familiar with the matter, as the company continues to expand its global footprint. Apollo Go is in discussions with potential partners to explore the right business models for the two markets, said the person, who asked not to be identified discussing private matters. Baidu Chief Executive Officer Robin Li has previously said the company was seeking partners such as mobility service providers, local taxi companies and third-party fleet operators for an asset-light approach. The development comes as Tesla prepares to launch its Cybercab robotaxi network within days, with Elon Musk staking the electric car maker's future growth on autonomous driving technology. At the same time, Chinese robotaxi companies including Apollo Go, and US-listed Weride and Pony AI are expanding into international markets such as the Middle East, Europe and Southeast Asia. Baidu didn't immediately respond to a request for comment. Dow Jones Newswires reported the plans earlier. Apollo Go is fast scaling up. It has deployed more than 1,000 self-driving vehicles worldwide, most of which are in China. It reached 11 million rides by the first quarter of this year, surpassing Alphabet's autonomous driving unit Waymo's 10 million paid rides as of May 23. The Baidu unit is also exploring entering Europe and Turkey, and was in talks with Swiss Post unit PostAuto to roll out a robotaxi service in Switzerland. More stories like this are available on ©2025 Bloomberg L.P.
