Investing in Tesla may not be as promising as some investors would hope, especially if Elon Musk’s vision of a fully autonomous future does not come to fruition. According to Guggenheim analyst Ronald Jewsikow, Tesla’s success is increasingly dependent on its autonomous vehicle technology, which presents a challenging dilemma for investors.
While Tesla’s stock has already seen a 29% decline this year due to increased competition in China and weakening demand, Jewsikow warns that more downside may be ahead. He maintains a sell rating on the stock with a price target of $126, reflecting a potential 29% drop from current levels.
Jewsikow emphasizes the importance of Musk’s leadership and the company’s autonomous vehicle initiatives in determining Tesla’s future success. However, he raises concerns about the lack of concrete evidence supporting the viability of Tesla’s robotaxi business and the timelines for commercializing autonomous vehicles.
In light of these uncertainties, Jewsikow has revised his second-quarter delivery estimates downward and questions Tesla’s ability to achieve significant volume growth by 2024. He highlights the importance of real-world data on Level 4 and Level 5 autonomy in informing investment decisions.
As an investor, it is crucial to carefully consider the risks and potential rewards of investing in Tesla and to stay informed about the latest developments in the electric vehicle industry. Stay connected with Extreme Investor Network for expert analysis and insights on the latest investment opportunities in the market.