TSLA: EV maker who cry "Wolf" - Exposed?
Looking Back.
On Fri, 05 Apr 2024 - Tesla CEO, Elon Musk tweeted to deny Reuters’ report that it (Tesla) is abandoning the plan to build the budget EV (Model 2).
Hours later, (just before 5pm ET), he tweeted again to confirm that it will unveil its Robotaxis on 08 Aug 2024.
Tesla stock price - 8 April to 12 April
By then, Tesla has ended the week falling -3.63% to $171.05 per share. (see above)
Post tweet, its future price immediately rose by +1.65%.
The week of Apr 8 - 12, saw Tesla’s rollercoaster performance.
It reached a high of $176.88 (on Tue, 09 Apr 2024), only to dip to the week’s low of $171.05 (on Fri, 12 Apr 2024). (see above)
Now that the dusts of euphoria have settled, the EV maker who cried “Wolf” has been exposed by US regulators on the issue of robotaxis license. (see below)
Californian agencies — Department of Motor Vehicles (DMV) and California Public Utilities Commission (CPUC), robotaxis’ official regulators - confirmed that they have not heard from Tesla about permits (it needs) to operate robotaxi service.
For the record, it could take a long time to secure a driverless permit.
Waymo ( $Alphabet(GOOG)$ )’s self-driving arm), took 8 months to get a permit to operate a robotaxi service in California.
Tesla’s current driverless technology is an entry-level (lowest) permit that allows Tesla to test self-driving cars with a human driver present.
They definitely need additional permits to run a driverless robotaxi service.
Other states (Nevada & Arizona) regulators have also confirmed Tesla does not have the required permit. Neither did they hear from it, about securing one.
Perhaps, Tesla may be able to launch a service in a state with less stringent regulations? The state of California certainly is not one of those states, as it’s considered a major market.
To date, it is still unclear what Tesla will announce come 08 Aug 2024.
My viewpoints: (mine & mine only)
- The man with the midas touch seems to have lost its golden touch.
- Or is it that media, investors and fans have become more discerning after all these years in the wilderness.
- They realized that not everything he says is true.
- With the regulators coming forward to deny autonomous driving permit issuance (to Tesla), this definitely is the buzz killer.
- For what it’s worth, the tweet worked even if it’s for a fleeting moment.
It bolstered Tesla’s stock prices on Monday and Tuesday; until Wednesday’s inflation data halted most US stocks’ ascend.
Quite certain the authorities’ cinfirmations will disadvantage Tesla when trading resumes on Mon, 15 Apr 2024.
Actually, if readers have kept abreast with Tesla’s news, you might have noticed Mr Musk’s new found interest in its Full Self Driving (FSD) apps recently . (see below)
- On 25 Mar 2024, it was reported that Mr Musk has mandated as part of EV delivery, employees must install, activate Tesla’s entry Full Self Driving (FSD) apps and take customer on a short test ride using FSD.
- The objectives are to (1) ramp up FSD data collection as training materials for its FSD apps, (2) get EV owners “hooked” on the “free” FSD version a.k.a “autopilot” with (3) hope of customers subscribing to actual FSD apps, at monthly rate of $199 and in the process (4) add to its sales revenue. Every dollar counts - no?
- On 26 Mar 2024 (a day later), it was reported that Tesla is giving US customers 1-month free trial on it’s $12,000 FSD beta version.
The beta version is supposed to be more “superior” than its autopilot - entry level FSD apps.
- On 13 Apr 2024, it’s been reported that Tesla has changed sales tactics by slashing its FSD monthly subscription from $199 by >50% to just $99.
- To think that Mr Talk Big once touted its FSD subscription would only get more expensive going forward. (see above)
Does it look “right” all above activities are paving the way for Mr Musk’s big reveal of Tesla’s robotaxis?
Only to have the news leaked by Reuters from right under his nose?
- Do you think Tesla will beat the odds and rise the following week?
- Do you think Tesla’s will lead the stock to dip further, the following week?
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