Here comes Tesla Cybercab!
Tesla (TSLA) has quietly rolled a potentially revolutionary new product off its ramp this week: Cybercab.
Unlike most electric cars on the market today, this vehicle has no:
a. Steering wheel
b. Pedal
This means what passengers will not be able to control the driving functions of the car. The estimated range of this 2-passenger electric vehicle is 200-300 miles.
And no charging socket is needed for this vehicle. Instead, the car will be charged by a pad wirelessly.
In the UK, the price range for this new Cybercab is set at £23,000.[1]
What’s interesting to note that the market is not exactly impressed by Tesla self-driving pilot at the moment.
Is it because investors are not expecting this quasi-autonomous electric vehicle to be a best-selling one? A ‘dud’, so to speak. Or has the current stock price baked in all the good news? I assume it is a mixture of both.
But the debate about Cybercab is heating up. Many are pointing out that Tesla has not fully tested its autonomous feature to required standards. The California department of motor vehicles, for example, has recently forced Tesla to remove the ‘autopilot’ wording as not to mislead buyers.
So the passenger autonomous transport sector is not all ‘set to go’ just yet.
Looking at Tesla’s stock price, it remains in the middle of the $380-500 range, valuing the company at $1.5 trillion.
Should investors buy the Tesla stock now?
Tesla, for all we know, is a legendary meme stock.
Its price trends are volatile; and breakouts often happened when least expected. Should Tesla’s big bet on robo-cars pay off, prices will zoom up instantly. Who knows, it may even become the world’s most valuable company one day.
In a way, betting on Tesla now is betting on Musk’s ability to pivot into this new world. The size of your exposure to Tesla correlates to your confidence on Musk. If you have none, then the stock is probably not for you.
Jackson is a core part of the editorial team at GoodMoneyGuide.com.
With over 15 years of industry experience as a financial analyst, he brings a wealth of knowledge and expertise to our content and readers.
Previously, Jackson was the director of Stockcube Research as Head of Investors Intelligence. This pivotal role involved providing market timing advice and research to some of the world’s largest institutions and hedge funds.
Jackson brings a huge amount of expertise in areas as diverse as global macroeconomic investment strategy, statistical backtesting, asset allocation, and cross-asset research.
Jackson has a PhD in Finance from Durham University and has authored over 200 guides for GoodMoneyGuide.com.
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