Hold onto your steering wheels (or maybe don’t!), because Tesla is making a sharp turn. In a recent conference call, CEO Elon Musk declared that Tesla’s true identity lies not in car manufacturing, but in artificial intelligence (AI) and its ambitious robotaxi plans.
This strategic shift might surprise some investors who have traditionally viewed Tesla through the lens of its electric vehicles (EVs), batteries, and solar panels. But Musk argues this perspective undervalues Tesla’s true potential. He points to the company’s soaring market cap, which many analysts haven’t adjusted to account for the future revenue stream of a robotaxi network.
Drawing a parallel to Nokia’s downfall in the face of the smartphone revolution, Musk emphasizes that Tesla is pioneering “smart cars” – a term already familiar in China’s EV scene. The core value lies in the AI powering these vehicles, not just their electric engines. This focus on in-car intelligence positions Tesla as a disruptor, poised to change the transportation landscape, not just another car company.
While the exact details of Tesla’s robotaxi plans remain under wraps, a dedicated “Cybercab” is expected to be unveiled in August 2024. This event promises to shed more light on how Tesla envisions its AI transforming the way we travel.
With this strategic pivot, Tesla is betting big on the future of autonomous transportation, and investors who don’t share this vision may need to reconsider their position on TSLA stock.
Reference- Clean Technica, Electrek, Tesla website, Futurism, The Verge