Tesla Stock Down Nearly 6% as It Enters Highly Important Chapter
Tesla stock is down for Thursday but could climb quickly as selling pressure is taken off the stock.
Quick overview
- Tesla's stock fell 5.7% on Thursday, primarily due to a broader market decline rather than company-specific issues.
- With Elon Musk's pay package secured, Tesla is poised to advance its investment in AI technologies, including self-driving cars and the Optimus robot.
- The company is expanding its robotaxi service and aims for nearly full autonomous driving in the coming years.
- Despite the recent stock drop, analysts suggest this could be a good time for investors to buy, as Tesla's long-term prospects remain strong.
Tesla fell 5.7% on Thursday as the wider stock market dropped. The government shutdown is over, and Tesla CEO Elon Musk has his trillion-dollar pay package, so Tesla can move forward.
Investors may not need to worry too much about Tesla (TSLA) stock dropping almost 6% on Thursday, because the company’s declining stock is primarily the result of a widespread stock market decline.
Dan Ives from wealth management firm Wedbush says that Tesla is entering “its most important chapter” now. With Musk’s pay package secured, the company can move forward and set its investment budget for AI, knowing that Musk will be behind their efforts.
Tesla Prepared to Make Waves in AI
Tesla appears to be very interested in pushing forward with AI technology, using it their self-driving cars, in their robotaxi service, and in their in-development Optimus robots. The robotaxi service has already launched in San Francisco and Austin, and the company is expecting to expand this service to other parts of the United States.
Tesla may move into nearly full autonomous driving on their vehicles in the next few years. That appears to be the direction they are heading. AI functionality has been built into some of their later models and could be the norm moving forward.
The company is looking at taking its proprietary artificial intelligence technology and implementing it into a standalone robot that could serve a variety of household functions or operate as a business assistant. This is Optimus, and it is still in early development stages, but Musk has spoken in the past about how the company intends to price the robot reasonably so that it can become a household essential.
Many of their investments into this technology are expected to pay off over the next few years, and Tesla is in this market for the long haul. So, investors may have to be patient with Tesla for now. Even though their stock is down for the day, that does not mean their investment into AI tech was the wrong choice. Even though they may not make massive profits because of their heavy investments, that does not mean that the stock will stagnate and fail to impress a few years down the road.
For the short term, this may be a good time to jump in on this stock. It is markedly down from where it was last month- now at $406 per share compared to early October’s $439. Tesla has actually performed well in recent months, though, and is close to their all-time high, so investors can expect the stock to continue to perform well in the short term as several negative factors are relieved. With the government shutdown ended and Musk’s pay package taken care of, this stock could shoot up quickly.
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