Tesla’s Robotaxi Pilot and Financial Outlook
Tesla (NASDAQ: TSLA) has initiated a limited, invite-only robotaxi pilot in Austin, which began this summer. This pilot program is closely monitored, as rides require an in-car supervisor, indicating that fully autonomous operation is still a work in progress. A Guggenheim analyst has reiterated a sell rating with a price target of $175, citing substantial downside risk of around 45% for the stock due to concerns about the lengthy, costly rollout of its autonomous ride-sharing network amid significant cash burn and regulatory hurdles.
Financially, Tesla reported a 12% year-over-year decline in second-quarter revenue, bringing it to $22.5 billion, along with a 42% drop in income from operations, now at $923 million. This aligns with a high valuation of about 192 times earnings, leaving little room for error as the company invests heavily in future technologies while facing cooling demand for its vehicles.
