1 Wild Card That Could Change Everything for Tesla Stock
If Tesla's Robotaxi service works, sales could soar.
Shares of electric-car maker Tesla (NASDAQ: TSLA) have been on a tear recently. The stock has risen more than 40% since early April, in spite of the company's having reported a huge decline in earnings per share in its first quarter, as automotive revenue fell 20% year over year. Furthermore, management refrained from providing a specific outlook for vehicle sales this year as the company navigates an uncertain economic environment.
So, what has investors so bullish on the stock even as fundamentals suffer? It largely boils down to one thing: big expectations for Tesla's upcoming launch of its Robotaxi service -- or an autonomous ride-sharing network. If the service works, the company could not only benefit from a fast-growing new revenue stream but it could also see a sharp increase in demand for its vehicles. In other words, Tesla's Robotaxi service could change everything for the company -- and the stock.
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