Robotaxis Change the Game – and Not Just for Tesla

[TradeSmith Power Trends logo] [TradeSmith Power Trends logo] October 3, 2024 Robotaxis Change the Game – and Not Just for Tesla If there’s one prediction we can make about Tesla (TSLA) and its “Technoking” – Elon Musk’s preferred title for himself – it’s that they are unpredictable. Nonetheless, it’s one of the most-owned stocks in the world, and it’s the largest automaker by market capitalization – currently $768 billion. It’s also a stock I often get asked about when I speak at conferences. I’ve owned TSLA for a while, but its quant ratings fluctuate in my Quantum Edge System – as does the share price. Big time. The last four years have been a wild ride ... If you break it down by year, you get... - Last 12 months: -2.4% - Last 24 months: - 0.7% - Last three years: -6.9% - Last four years: 61.1% (thanks to that huge spike at the beginning of the chart) It’s a tricky one for sure, and now Tesla has an upcoming “Robotaxi” event on October 10 that looks primed to change the game again... even if Tesla doesn’t become the biggest winner. Let’s see what the data shows about TSLA right now, and then we’ll look at what’s coming. TSLA’s Quant Ratings From a quant perspective, the bottom line is that TSLA currently sits in the buy zone – meaning its Quantum Score is between 70 and 85. Source: TradeSmith Finance The fundamentals are strong with a 75 rating. And while the technicals aren’t the most powerful in the market at 67.6, that’s still quite good. Sales and earnings growth are strong, and the company has a solid profit margin of 15.5% with fairly low debt to worry about. Shares trade 111.8 times expected earnings, which is quite high. And I’m a little concerned that Tesla has reported earnings below expectations the last four quarters, with revenue also shy of estimates in three of those quarters. One of the keys to my system is tracking Big Money flows. Peeking inside my system, we saw a flurry of buy signals (green bars) on TSLA in June and July, and one more just this past Monday. The rest of the year has been pretty quiet. Source: MAPsignals.com The Quantum Score above 70 tells us that quantitatively TSLA has a good shot at moving higher in the future. It’s not one of the stronger buys in my system, but it still rates a buy. I would make sure you’re comfortable with recent bumpiness in earnings reports and occasional negative headlines, like word today that Tesla recalled more than 27,000 of its new Cybertrucks – the fifth such recall this year. The problem this time is delayed images from the rear-view cameras, which can reduce visibility and raise the risk of accidents. It kind of makes you wonder about these self-driving robotaxis set to be unveiled a week from today, so let’s talk about that. SPONSORED AD [This Coming Week Elon Could Trigger a Boom in this Sub-$3 Stock]( [image]( This is your chance to get in on the ground floor of what could be Elon’s next big thing. You see, Elon is set to reveal his Robotaxi and I believe it could help send shares of a little-known Elon supplier skyrocketing by as much as 20X. And the time to buy is now, while shares are trading under $3.. [Click here to see the details and learn how to get positioned before Elon’s event.]( Here Come the Robotaxis Elon Musk has been talking about robotaxis for a decade, and at the moment, the big unveiling is scheduled for next Thursday, October 10. It was supposed to be in August but got pushed back, so we’ll see if there are any hiccups this time around. Expectations are that we’ll see a demonstration of the “Cybercab” (as it’s rumored to be called) and get other details like cost, production schedules, availability, and maybe even a Tesla ride-sharing app. It’s okay to have mixed feelings about autonomous vehicles and robotaxis. The idea that driverless cars will be transporting people all over the place is both terrifying and amazingly cool. Knowing how technology marches on, the question has always been more an if than a when. Actually, the “when” is already now. Waymo, the autonomous vehicle division of Alphabet (GOOGL), already operates ride-hailing services in San Franciso, Phoenix, Los Angeles, Austin, and Atlanta. The larges area is Phoenix, which covers 315 square miles. I live in Florida and rarely see even an electric vehicle, so self-driving cars are like unicorns to me. But my colleague Luke Lango now lives in the Phoenix area, and he and his wife both use the ride-hailing service. He says it’s easy, safe, and significantly cheaper than Uber. Like any transformation change, these things take time. We’ll see how Tesla is doing next week, but I would hesitate buying TSLA purely because of the upcoming event. Also like any transformation change, there will be huge opportunities for investors while others get left behind. I will definitely be cranking up my Quantum Edge system to find them. In the meantime, I invite you to join Luke Lango for a [special strategy session he’s hosting on Monday, October 7, at 10 a.m. Eastern](. He’s spent months researching Tesla’s plans, and will reveal everything he knows about the Cybercab. He also tells me he’s found a little-known driverless-car supplier that he believes could play a key role in the AV revolution... and potentially benefit investors along the way. He’ll show you how to get all the details on this small supplier. [For more details about this broadcast – and to save your seat – click here](. It’s pretty cool stuff, and it will be worth your time. Talk soon, [Jason Bodner signature] [Jason Bodner signature] Jason Bodner Editor, Jason Bodner’s Power Trends © 2024 TradeSmith, LLC. All Rights Reserved. P.O. Box 340087 Tampa, FL 33694 To unsubscribe or change your email preferences, please [click here](. [Terms of use]( | [Privacy Policy](