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Tesla's "Cybercab" global debut sends stock falling
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Tesla: A Buy, note before Robotaxi day

*Disclaimer: I own Tesla stocks and this post reflects my personal views. Always DYOR (Do your own research).
1. Lower your expectation for Robotaxi day:
Robotaxi aka cybercab is not expected to enter mass production until Q1 2027. Given this timeline, expecting a significant post-event stock surge for Tesla may be overly optimistic. Whether Tesla's Robotaxi service will use fully autonomous vehicles or leverage existing Tesla owners' cars, the company's Full Self-Driving (FSD) technology must meet governmental requirements (Level 4 autonomy in some states) to operate driverless taxi services. I think robotaxi day might not able to boost share price, but i am still bullish on Tesla for long-term. If there were any pullback after the event, it would be a good time to buy.
2. Diversification Beyond Automotive:
Despite mixed Q2 2024 results with auto revenue down 7% yoy to $19.9 billion, Tesla's strategic shift towards non-automotive sectors like energy and mobility promises sustainable EPS growth. Energy Generation and Storage revenue doubled to $3 billion, driven by strong demand for Powerwall and Megapack products.
3. Financial Health:
Tesla boasts strong cash flow and manageable debt, with total debt at $12.5 billion and cash and cash equivalents increased to $30.72 billion. This provides ample resources for R&D and expansion, supporting initiatives like the Cybertruck and AI projects. Operating cash flow rose to $3.6 billion, up from $3.065 billion the previous quarter.
4. Valuation Insights:
Tesla: A Buy, note before Robotaxi day
Telsa is now trading at around 60x P/E, 56x EV/EBITDA. While traditional metrics suggest a high valuation, a sum-of-the-parts analysis reveals potential undervaluation. Tesla's focus on non-automotive segments justifies its valuation premium, with potential for upside revisions to EBITDA estimates. The 2025 forward EV/EBITDA ratio stands at 51.7x, but considering long-term growth potential and benefits from diversification, it may lower to around 30x by 2026.
If you're considering investing, you might consider buying a call option with a very small amount of capital instead of going all in. Always DYOR.
Tesla: A Buy, note before Robotaxi day
Tesla: A Buy, note before Robotaxi day
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