Tesla: Robotaxi Dreams Crushed By Alphabet's Waymo
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Sarfatti Investment Research279 FollowersFollow5ShareSavePlay(11min)Comments(12)SummaryTesla, Inc. is rated Strong Sell due to an unjustifiable $1.5T valuation and a forward P/E over 280.Tesla's first-mover advantage in EVs is eroding as competitors close technological gaps and capture market share, particularly in the U.S. and Europe.Tesla lags in the robotaxi and FSD race, with rivals like Alphabet's Waymo already launching operational services and leveraging superior regulatory acceptance.Profitability is deteriorating, with Q3 operating margins down 501 bp and regulatory credit revenue falling 43.6% YoY, undermining TSLA’s premium multiple.
Getty Images Introduction Today, Tesla, Inc. (TSLA) is a titan of global markets, boasting a market cap of over $1.5 trillion. However, I believe there is a strong cognitive dissonance between the financial & commercial reality of this company going forwardThis article was written bySarfatti Investment Research279 FollowersFollowHello. I am a graduate from Bocconi University with a degree in Economics and a concentration in Quantitative Economics. I am currently working at a management consultancy, with aspirations of working as an investment analyst. Previously, I have done internships in private equity (mid-market buyouts) and venture capital (seed-stage space-tech and climate-tech) at small boutiques. I primarily invest in growth stocks, with a focus on highly innovative sectors, particularly tech and energy. My portfolio consists of mainly high-conviction growth plays - ranging from large-cap tech to speculative early-stage ventures. I aim to provide sound, quantitative analysis through deep fundamental insights on target companies within the context of the sector they operate in & broader macro conditions.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.