Tesla Inc. (NASDAQ: TSLA) continues to spark both excitement and skepticism as it pushes toward its long-promised robotaxi rollout. While CEO Elon Musk has long touted Tesla’s vision-based AI approach as a game-changer, the technology’s repeated delays and unproven reliability have cast doubt on its near-term viability. Originally promised in 2017, genuine full self-driving (FSD) capabilities remain elusive, leaving investors to question whether the company can truly deliver on its robotaxi ambitions.
Robotaxis: A Potential Game-Changer—If They Work
If Tesla succeeds, its vision-only self-driving strategy—which bypasses detailed mapping and LIDAR—could give it a massive scalability advantage over rivals. This streamlined approach would enable Tesla to deploy robotaxis globally with far less effort and cost, potentially redefining the autonomous vehicle landscape.
However, the technology’s readiness remains in doubt, and the stakes couldn’t be higher. With competition intensifying, particularly from Chinese EV giant BYD, and the potential for Trump’s administration to revoke EV subsidies, Tesla is facing a fiercely competitive environment.
Musk’s Split Focus: A Red Flag for Investors
One of the biggest concerns for Tesla shareholders is Musk’s divided attention. With leadership roles across Tesla, SpaceX, X (formerly Twitter), and his Department of Government Efficiency (DOGE) project, Musk’s absence from day-to-day Tesla operations raises questions about the company’s strategic direction during this critical phase.
Valuation Remains Lofty Despite Headwinds
Even after its recent stock price decline, Tesla remains expensively valued, trading at:
- 100 times sales, well above industry peers.
- 136 times earnings, an extreme multiple that assumes robotaxi success is already priced in.
With falling EV sales in Europe and mounting competition, Tesla’s rich valuation seems difficult to justify without the successful launch of its autonomous fleet.
The Road Ahead
For potential investors, the robotaxi rollout represents both enormous potential and substantial risk. While Musk’s bold vision could revolutionize transportation, his divided focus and the uncertain timeline for FSD make Tesla a risky bet. For now, cautious investors may prefer to wait for clearer signs of progress before jumping in.
