On September 4, Tesla fell 5.92% in a single day. That night, U.S. nonfarm payrolls added 162,000 jobs, nearly three times expectations, and the market quickly priced the probability of a September rate hike at around 58%. Apple, which was also being pressured by interest-rate expectations, fell only 2.5%; Tesla fell twice as much. The most direct explanation is that disappointment from the just-unveiled Cybercab had not yet faded.
What the market is arguing about is not the car, but the valuation foundation. Tesla has long been priced like a “tech company,” with a bet on autonomous driving upending transportation. Now, reports say its steerless, pedal-free Robotaxi is facing regulatory scrutiny, though those claims have not yet been officially confirmed; some analyses already suggest Tesla is falling from a “tech illusion” back to the position of an “automaker.” If so, how much froth is still left in the current price?
On the other hand, Musk has been making one statement after another: market reports say the Robotaxi may operate around the clock next month, though that remains to be confirmed; he also said you could plug in a PS/Xbox directly in the car. On one side, regulatory scrutiny remains unresolved; on the other, there is talk of connecting game consoles inside the car. Which one is really Tesla’s future?
The real question is: if regulators ultimately give the green light, was this drop an overreaction? If they don’t, how long can game consoles keep the market excited?
What the market is arguing about is not the car, but the valuation foundation. Tesla has long been priced like a “tech company,” with a bet on autonomous driving upending transportation. Now, reports say its steerless, pedal-free Robotaxi is facing regulatory scrutiny, though those claims have not yet been officially confirmed; some analyses already suggest Tesla is falling from a “tech illusion” back to the position of an “automaker.” If so, how much froth is still left in the current price?
On the other hand, Musk has been making one statement after another: market reports say the Robotaxi may operate around the clock next month, though that remains to be confirmed; he also said you could plug in a PS/Xbox directly in the car. On one side, regulatory scrutiny remains unresolved; on the other, there is talk of connecting game consoles inside the car. Which one is really Tesla’s future?
The real question is: if regulators ultimately give the green light, was this drop an overreaction? If they don’t, how long can game consoles keep the market excited?