Tesla Stock Pauses Rally On Robotaxi Delay

WEB RoboTaxi Event Won't Boost Tesla Stock, Says William Stein

Tesla Stock Pauses Rally on RoboTaxi Delay

Analyst Stein: FSD Shortcomings Make It Challenging to Value RoboTaxi

Tesla's stock (NASDAQ: TSLA) is on track to end its winning streak after the company delayed the launch of its highly anticipated robotaxi event.

The event, originally scheduled for August 8, has been pushed back to October 10th. The delay is reportedly due to the company's need for more time to build prototypes.

Analysts are mixed on the impact of the delay on Tesla's stock. Some believe that it could be a positive sign, as it suggests that the company is taking the time to develop a more polished product.

• However, other analysts believe that the delay could be a sign of problems with the company's self-driving technology.

William Stein, an analyst at Truist Securities, who has a hold rating on Tesla's stock, believes that the delay is a sign of the challenges that the company faces in developing its self-driving technology.

• Stein has taken test drives in Tesla's FSD (Full Self-Driving) system in April and July

Based on his experience, Stein believes that FSD is not yet ready for commercial use.

• "The shortcomings that we observed make it challenging to value a robotaxi business," Stein wrote in a report.

Stein's comments echo the concerns of other analysts who have raised doubts about Tesla's ability to develop a safe and reliable self-driving system.

• These concerns have weighed on Tesla's stock price in recent months.

Tesla's stock is down more than 20% from its all-time high of $1,243.49, which it reached in November 2021.

Conclusion

The delay of Tesla's robotaxi event is a setback for the company, but it is too early to say what the long-term impact will be.

If Tesla is able to successfully develop a safe and reliable self-driving system, it could be a major boost to the company's stock price.

However, if the company continues to face challenges in developing its self-driving technology, it could weigh on the stock price for some time to come.