Cars and Drivers

New Tesla "Robotaxi" Could Wreck Stock Or Drive It Higher

Douglas A. McIntyre

Published: October 6, 2024 9:10 am

Elon Musk will unveil Tesla’s (NASDAQ: TSLA) “robotaxi” on October 10 instead of August 8, as originally planned. The “robotaxi” is supposed to be America’s first fully autonomous vehicle, meaning it can drive without human help. Tesla already has a product called “self-driving mode.” Tesla says it “reduces your overall workload as a driver.” However, the driver must watch the road and hands close to the steering wheel.

The “robotaxi” will be based on very advanced artificial intelligence. It will also rely on data Tesla has gathered from cameras and software, which has tracked the millions of miles of highways and roads Tesla owners have traveled over recent years. This driving data probably covers every road in America, even small ones.

One aspect of “robotaxi” operation is reacting to unexpected events. This could be a child darting into the street, for example.

A truly self-driving car is as large a leap in car technology as in the auto industry’s history. It will revolutionize the driver’s relationship with their cars and every road they drive on, no matter where the road is or the difficulty of navigation.

What does the “robotaxi” launch mean to Tesla’s stock? Everything. If the functions of a car have been radically altered to be completely self-driving, Tesla will be one of the leading AI companies in the world. This justifies why Tesla has a valuation that is many times higher than that of other global car companies.

If the “robotaxi” is anything short of a perfect self-driving car, Tesla’s shares will be in trouble.