TSLA Robotaxis: Musk's BEST Marketing Ploy !

Downgrade and Next.

I refer to my post on $Tesla Motors(TSLA)$ being downgraded (click here ! to read) and all the negative presses that it has received in recent days.

Apparently, Tesla fans and speculators have thrown caution to the wind and re-embraced the stock as US market sentiments, remained mixed & flatlined on Mon, 08 Apr 2024.

All the while waiting for US’s March 2024 inflation data to be released.

Monday’s closing:

• The car maker closed up +4.90% to $172.98 per share.

• This came about as investors lapped up CEO musk’s latest proclamation that Tesla would debut its long-awaited robotaxi on 08 Aug 2024.

Coincidence ?

Four days after Mr musk 05 Apr 2024 tweet about robotaxis unveiling, Tesla decided to settle out-of-court a 2018 lawsuit over the death of an Apple engineer, inextricably linked to Tesla’s Full Self Driving (FSD) “capability”. (see below)

Coincidence?

Reuters had an in-depth account of the accident.

A recommended read for long-term Tesla investors.

Here’s the skinny:

• Accidental death took place in 2018.

• Allegation: victim - Walter Huang’s 2017 Model X’s autopilot steered and crashed the EV into a highway barrier, burst into flame, killing the victim.

• The case has been set for trial in San Jose on the week of 18 Mar 2024.

• This follows 2 previous California trials over Tesla’s autopilot.

• In the previous trials, Tesla won by arguing the drivers did not heed instructions to maintain attention while on “autopilot”.

• The difference this time, Huang’s lawyers have testimony from Tesla witnesses indicating Tesla never studied how quickly & effectively drivers could take control, if autopilot accidentally steers towards an obstacle.

• One witness testified that Tesla waited until May 2021 to add a new system that monitors drivers' attentiveness.

• The add-on was first considered back in 2019, 3 years before it was eventually delivered.

• There were at least 1,000 “known” crashes reported, of which 23 resulted in death.

• Despite marketing features as Autopilot and Full Self-Driving (FSD), Tesla has never achieved Musk's oft-stated ambition of producing autonomous vehicles that require no human intervention.

• Tesla’s FSD is at best Level 2 ready, while a truly autonomous EV should be at Level 6.

Autopilot Lawsuits and Safety Concerns.

• Tesla faces many lawsuits from crashes where Autopilot might have been involved.

• US safety regulators are investigating hundreds of crashes potentially linked to Autopilot.

• Despite these concerns, Tesla latest offering is a free trial of their advanced driver-assistance system, FSD.

• Who does not like a “freebie”, I supposed.

Tesla Settles.

• Tesla reached a settlement 9 days before the trial commences.

• A public trial could further damage its reputation, especially now when Mr musk has announced the big “robotaxis” reveal.

• The settlement amount paid was not revealed.

• Perhaps most lamentable is that all sordid details pertaining to Telsa’s FSD will forever be buried, along with the settlement monies paid.

• This is in stark contrast to Mr musk’s 21 May 2022 publicity stun where he tweeted that Tesla will never settle, even if it meant losing. (see above)

• In less than 2 years, he backtracked yet again. Then again, what’s new?

• Honesty and transparency were never part of his DNA makeup.

My viewpoints: (mine & mine only)

• The man is a mastermind when it comes to seeking attention for himself and Tesla.

• He understands the Marketing principal of “there is no such thing as bad publicity”, to a “T”.

• In the midst of much negativity swirling around Tesla, he was able to turn things around quickly with (just) an announcement and get his fans all worked up.

• I still believe that on 23 Apr 2024, there will be one more correction when its full Q1 2024 earnings are unveiled.

• Any more tricks up his sleeves, when the time comes?

I cannot but help wonder if Mr musk is indeed the Pied Piper of Hamelin from our childhood fairy tales ?.

Must Read: Click on below titles to access. Give a like & help to Repost ok. Thanks.

• Earnings Save US Market from Inflation Shock ?

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• Do you think Tesla stock price will continue to improve in tandem with US market sentiments?

• Do you think Tesla is ready to unveil its robotaxsi in slightly less than 4 months?

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