If one is to buy into Tesla, Inc. (NASDAQ:TSLA) CEO Elon Musk’s vision for the future of the company, there will be plenty of dollar signs up ahead.
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While EV sales might be slowing in the here and now, Tesla’s future ambitions of dominating the autonomous driving realm and the eventual launch of humanoid androids are generating no shortage of excitement.
Morgan Stanley has estimated that the humanoid robot market could be worth up to $5 trillion by 2050, while Musk has claimed that Tesla could have 90% of the projected $45 billion robotaxi market by 2030.
The company’s robotaxi launch is slated for June 22, a tangible milestone in Tesla’s pathway forward. So, is now the time for unbridled enthusiasm regarding TSLA?
Not so fast, says investor Shubhm Mitessh Thakkar, who is calling for a “reality check” on some of Tesla’s grand pronouncements.
“Tesla, Inc.’s robotaxi business faces major technical and regulatory hurdles, with FSD (Full Self-Driving) performance lagging behind competitors like Waymo and no near-term revenue boost expected,” explains the investor, who also adds that “the humanoid robot (Optimus) opportunity is massively overhyped.”
Thakkar seeks to throw some cold water on both of these endeavors, starting with Tesla’s FSD technology. The investor cites a number of statistics, that to his mind, prove that neither the hardware nor the software is “good enough” at present.
“It is unlikely, in my opinion, that Tesla would be able to launch a fully functioning, ride-hailing robotaxi service any time soon,” adds Thakkar.
Moreover, the investor is exceptionally dubious of Musk’s assertion that Tesla will enjoy 90% of the robotaxi business – calling this claim “ridiculously naive.”
When it comes to humanoid robots, Thakkar notes that banks and consulting firms are offering a range of opinions when it comes to the total size of the market. This leads the investor to posit that “the humanoid robot industry is surely not as big as Elon Musk … would like to believe.”
To sum up, Thakkar urges investors to approach Musk’s ambitious statements with abundant caution, and is giving TSLA a Strong Sell rating. (To watch Thakkar’s track record, click here)
Wall Street offers a mixed view of TSLA, with 14 Buy, 12 Hold, and 9 Sell ratings. This gives TSLA a consensus Hold (i.e. Neutral) rating, while its 12-month average price target of $286.14 contains a downside of ~11%. (See TSLA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.