Something Big is Coming.... šŸ˜°

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For the 2nd October 2024:

  • Something Big is Comingā€¦. šŸ˜°

Something Big is Comingā€¦. šŸ˜° 

October is a huge month for Tesla. Dare I say, make or break. šŸ˜° 

I feel as much tension as that one scene from Jurassic Park where the waterā€™s shaking as the T-Rex is on the loose. But instead of an ancient dinosaur bursting onto the scene, itā€™s Tesla hosting their Robotaxi event Iā€™m worried about.

Isā€¦.Is that autonomous driving?!

And then right after that weā€™ve got Q3 earnings coming up. Letā€™s take a closer at what we can expect from both of these events for Tesla this month. šŸ”ļø 

October 10th - Teslaā€™s Robotaxi Event šŸ¤–šŸš—

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.

Theyā€™re 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. Iā€™m really hoping the demonstration doesnā€™t go something like the ā€œindestructible cyber truckā€ā€¦.

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 Teslaā€™s 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, Teslaā€™s still holding onto strong gross margins (around 18%, if youā€™re 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? Thatā€™s 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. šŸ’° Yes. Trillion.

If you believe in first mover advantage this has got to be a space on your radar.

So youā€™re in the knowā€¦šŸ’”

First-mover advantage is when a company getā€™s a competitive edge by being the first to enter a market. It letā€™s 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... šŸ“ŠšŸ’¼

Then about a week later weā€™ve got Teslaā€™s Q3 earningā€™s report. The numbers arenā€™t expected to blow us away. Analysts have already said theyā€™re not expecting massive growth from their EV division right now.

I donā€™t know if thatā€™ll save us from the share price tanking but hopefully any ā€œbad newsā€ drops have been baked into todayā€™s 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 thingā€™s for sure, Iā€™m not expecting record breaking EV sales this quarter. In fact, I think if youā€™re buying Tesla looking for outrageous growth the focus has to move away from car sales. The real question has to be ā€œDo I think this robotaxi stuff is going to take off?ā€.

So whatā€™s the Answer? šŸ¤” 

. I think it still has a lot to offer outside of the robotaxi potential, like creating an Apple-like ecosystem Iā€™ve written about here. Teslaā€™s stock has already spiked 32% in Q3 even without the robotaxi event.

But letā€™s be clear here, the robotaxi event could be the moment weā€™ve been waiting for. If Tesla can roll out autonomous vehicles, it opens the door to a brand-new, high-margin revenue stream. I donā€™t need to tell you whatā€™ll happen to the stock price if they pull that off, right?

Weā€™ve still got a bit of time yet to make a decision. The earliest projections for a potential launch are currently late 2025 itā€™s 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 Iā€™m happy with. If the robotaxi demo looks good & thereā€™s any major pullbacks coming from a lackluster earnings, Iā€™ll most likely look to scale up a littleā€¦.

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Thatā€™s all! See you same time tomorrow šŸ‘‹ 

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