Elon Musk made several announcements recently while launching Tesla’s (NASDAQ:TSLA) gigafactory in Austin, Texas. One of the company’s commitments was to making a “dedicated” self-driving taxi in the future. I wouldn’t hold your breath if you’re expecting this announcement to move TSLA stock higher.
In 2019, Musk suggested that the company would have self-driving taxis on the roads by 2020. Unfortunately, like the Cybertruck, the reality isn’t matching the early statements made. By the time the first Cybertrucks roll off the assembly line in 2023, the company will have taken four years to get this vehicle to market.
Do not buy TSLA stock because of Musk’s robotaxi announcement. There are plenty of other reasons to like its shares.
Tesla Is Way Behind Waymo
Alphabet’s (NASDAQ:GOOG) Waymo unit recently announced it would be testing its Waymo One robotaxi service in San Francisco. That is the second city where it is testing its service. It has operated in parts of Phoenix since 2020. Waymo uses Jaguar I-Pace electric SUVs to give employees rides to and from work.
Understandably, the world’s largest producer of electric vehicles (EVs) wants to get into the robotaxi industry. Analysts estimate robotaxis will generate as much as $2 trillion worldwide by 2030. However, Tesla is miles behind Waymo. The closest it has come to having self-driving in its vehicles is the $12,000 advanced driver assistance option, which isn’t autonomous.
Musk said earlier this year that he expects full self-driving to be available by the end of this year. Of course, that is unlikely. But even if the company does meet this goal, it is still a long way from a dedicated robotaxi.
TSLA Stock and More Gigafactories
If you are looking for a news story that could move Tesla’s share price, the recent comments of Tesla bull Kevin Paffrath merit your attention. He stated:
“‘I think in the next two years, we’re probably gonna get between five and 10 new factories, and that’s hugely bullish for Tesla investors.’”
The sheer volume of EVs it could produce were this to come to fruition is staggering. Once the Berlin factory is online, Tesla will be able to make two million vehicles annually. That is something you can hang your hat on.
I wouldn’t put much stock in the robotaxi angle at the moment. However, if Paffrath’s prediction comes true in a year or two, I’d be more inclined to view that as a value enhancer for TSLA stock.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
