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Something Big is Coming.... š°
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Our Biggest Gainers & Losers of the Day in the $100,000 Build Portfolio
For the 2nd October 2024:
Something Big is Comingā¦. š°
Something Big is Comingā¦. š°
October is a huge month for Tesla. Dare I say, make or break. š°
I feel as much tension as that one scene from Jurassic Park where the waterās shaking as the T-Rex is on the loose. But instead of an ancient dinosaur bursting onto the scene, itās Tesla hosting their Robotaxi event Iām worried about.
Isā¦.Is that autonomous driving?!
And then right after that weāve got Q3 earnings coming up. Letās take a closer at what we can expect from both of these events for Tesla this month. šļø
October 10th - Teslaās Robotaxi Event š¤š
Put it in your calendar. Circle it in red. October 10th is the day it goes down.
Tesla is hosting an event to talk about their robotaxis. Fully self-driving cars that could make uber drivers unemployed change the entire landscape of transportation. Imagine waving down a Tesla taxi & you hop in with no driver behind the wheel that you have to make small talk with. Sounds like a dream.
Theyāre expected to show off their Full Self-Driving (FSD) technology improvements & give us a clearer picture of when robotaxis might be coming to a town near you. Iām really hoping the demonstration doesnāt go something like the āindestructible cyber truckāā¦.
But if all goes well, this should open up a whole brand-new revenue stream for Tesla, to move them even further away from being a car manufacturer & deeper into the tech bucket.
Why is that so important right now?
Well, we know Teslaās been one of the big boys in the electric vehicle (EV) space for a while now, but the EV market has been cooling off a bit. More competition & less demand in never a good combo.
Even with those challenges, Teslaās still holding onto strong gross margins (around 18%, if youāre into the numbers). And one huge advantage they do have is their profitable in this space which very few EV companies or segments can say. But the robotaxi event? Thatās where things can really start heating up again.
This could be the start of Tesla holding the torch to a $2.75 trillion market by 2033. š° Yes. Trillion.
If you believe in first mover advantage this has got to be a space on your radar.
So youāre in the knowā¦š”
First-mover advantage is when a company getās a competitive edge by being the first to enter a market. It letās them establish strong brand recognition, customer loyalty & market share before any competitors even show up.
Think Amazon in the e-commerce space, Netflix in the streaming space.
Q3 Earnings Right After... šš¼
Then about a week later weāve got Teslaās Q3 earningās report. The numbers arenāt expected to blow us away. Analysts have already said theyāre not expecting massive growth from their EV division right now.
I donāt know if thatāll save us from the share price tanking but hopefully any ābad newsā drops have been baked into todayās drop after they announced just falling short of expectations on total deliveries for Q3.
Hopefully the market is starting to bake in the expectation of a less than groundbreaking Q3.
One thingās for sure, Iām not expecting record breaking EV sales this quarter. In fact, I think if youāre buying Tesla looking for outrageous growth the focus has to move away from car sales. The real question has to be āDo I think this robotaxi stuff is going to take off?ā.
So whatās the Answer? š¤
. I think it still has a lot to offer outside of the robotaxi potential, like creating an Apple-like ecosystem Iāve written about here. Teslaās stock has already spiked 32% in Q3 even without the robotaxi event.
But letās be clear here, the robotaxi event could be the moment weāve been waiting for. If Tesla can roll out autonomous vehicles, it opens the door to a brand-new, high-margin revenue stream. I donāt need to tell you whatāll happen to the stock price if they pull that off, right?
Weāve still got a bit of time yet to make a decision. The earliest projections for a potential launch are currently late 2025 itās figuring out if you want the early bird ticket on the potential rocket.
My current position in Tesla
As it is, Tesla makes up just over 2% of the portfolio which Iām happy with. If the robotaxi demo looks good & thereās any major pullbacks coming from a lackluster earnings, Iāll most likely look to scale up a littleā¦.
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Thatās all! See you same time tomorrow š
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