Tesla: A Spot of Bother and a Dash of Genius

by

Now, Tesla, you see, is a bit of a conundrum. A dashedly popular company, of course, but one that seems to inspire opinions with the force of a gale. The stock, at the moment, isn’t exactly giving money away. Sporting a price-to-earnings ratio that would make a lesser firm blush – a hefty 297, if you please – and a price-to-book ratio of 18.5, it’s a bit like asking a chap to pay a king’s ransom for a perfectly serviceable umbrella. And to make matters a trifle awkward, sales aren’t exactly soaring; a bit of a dip, what with the Cybertruck figures tumbling 48% year on year and the S, X, and Y models experiencing a similar, though slightly less dramatic, decline. Only the Model 3 showed a glimmer of improvement, but a mere 1.3% increase hardly sets the Thames on fire.

Hailing a Brighter Future

However, don’t despair just yet, because beneath this surface of mildly alarming figures lurks a rather clever plan. The enthusiasts, the Tesla bulls, as they are known, aren’t flapping their flags in panic. They’re pinning their hopes on robotaxis, a concept that until recently sounded like something out of a Buck Rogers serial. But lo and behold, it’s becoming increasingly less of a dream and more of a reality. One sees Alphabet’s Waymo making rather a dent in Uber’s market share in San Francisco, a development that gives one a cheerful sort of feeling.

Cathie Wood’s Ark Investment Management, a firm with a decidedly optimistic outlook, believes that declining costs and prices will send demand for robotaxis into the stratosphere. They suggest Tesla has the capacity to build fleets large enough to accommodate all the urban vehicle miles in the major ride-hailing cities. A bold claim, certainly, but one can’t help but admire the sheer chutzpah.

Of course, there are a few snags. Tesla needs to expand into new cities and, crucially, get rid of those pesky human “failsafe” drivers. Investors, naturally, will be keeping a watchful eye on these developments. It might be 2027 or 2028 – or even later – before robot-powered ride-hailing becomes commonplace, but one mustn’t rush these things. A properly functioning robotaxi is a thing of beauty, and one wouldn’t want to compromise on quality.

And let’s not forget Elon Musk himself, a chap who clearly believes in his own genius. He’s been putting his money where his mouth is, and maintains that Tesla’s autonomous capabilities are worth more than the entire automobile industry combined. A rather extravagant statement, perhaps, but one can’t help but be impressed by the fellow’s confidence.

Loading widget...

Robots and Other Ingenious Devices

But wait, there’s more! Autonomous ride-hailing isn’t the only robotic trick up Tesla’s sleeve. The company is also dabbling in humanoid robotics – robots that can perform human tasks. At the World Economic Forum, Musk boldly declared that Tesla’s Optimus robots could add a staggering $20 trillion to the company’s market capitalization. A preposterous sum, one might say, but if Musk is even remotely correct, it would mean that this already remarkably successful company will accomplish the feat of multiplying its value yet again.

As with robotaxis, there are a few hurdles to overcome. Tesla needs to stick to its delivery timeline and, crucially, bring down costs so that prices are within reach of the average consumer. But Wall Street is already factoring Optimus into its valuations, which is a reassuring sign for investors, even those with only a modest stake in the company. One suspects that if Tesla can pull this off, the stock will be doing rather more than merely holding its own. It will be positively soaring.

Read More

2026-01-29 19:22