Instead, Musk had Tesla focus on autonomous driving technology, at last visible in Austin, where Robotaxi is initially confined to a small part of the city and a few dozen users. Even so, Tesla’s driverless car may have a cost advantage over the early leader in autonomous vehicles, Waymo.
“If they can deliver on autonomy at a much lower production cost, they can gain some meaningful market share,” Munster said.
And that’s why investors still price Tesla as the world’s most valuable carmaker, even as consumer incentives to buy EVs disappear in the U.S. and market share vanishes in Europe due to Chinese competition and anger over Musk’s politics.
“The fundamentals for Tesla are terrible. Yeah — terrible is the word,” Munster said. “And the stock is doing incredible because investors realize there’s something bigger going on here.”
