I am a little lost about the hype of the robotaxi, feels like it is artificially stirred up to keep the stock value going and to avoid casual meme investors from turning away.
To begin, Waymo already has a product running around in San Francisco. While it is not perfect, like the recent news of people being paid to help close car doors that were not shut properly, there already is a steady track record. Meanwhile Tesla is entering a market where they not only have to compete with other Western brands, but also fight off the Chinese competitors who are likely to bring better value and are more agile.
I am sure Cathie Wood making the call to continually dump, knows that the road ahead is rocky. Tesla as a brand is highly reliant on their caricature of a CEO to bend the rules with his wealth, and tickle the fancies of uninformed investors. It is no longer a situation where they are the first player in a new field and therefore have the time to amass momentum while others play catch up. The advantage that the brand had for their EVs has already evaporated, forcing them to try and pivot elsewhere.
Secondly, Tesla has an overly high P/E ratio, which does not make sense when looking at the sort of results they generate. It feels like everyone is grasping at straws when they so sound sure of more success to come. Once again, there is nothing groundbreaking here to justify this sort of overvaluation. Robotaxi? AI? Robot? All saturated to the gills with players who want to be the next big thing. Separately, the AI bubble is getting bigger, and I do not see Tesla mounting a serious fight to weather the bubble bursting.
In short, the value has to come down until something revolutionary pops up, and no, not the "whoops, the truck's window broke, even though it's supposed to be bulletproof" type of revolutionary.
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