Tesla FSD (Supervised) Approved in Slovenia, Launching Soon

Tesla (TSLA) has begun limited paid rides in its Cybercab robotaxi in Austin, Texas, marking a step toward autonomous driving. The vehicle lacks traditional controls, attracting regulatory scrutiny from NHTSA. Tesla faces potential hurdles but sees long-term opportunities in robotaxi networks. Regulatory risks, technology reliability, and scaling challenges could impact its valuation and growth prospects.

Goldman Sachs maintained a Neutral rating on Tesla (TSLA) with a $360 price target, citing potential upside to $500 and downside to $150. The firm highlights Tesla's cost advantage in the robotaxi market with its Cybercab, but emphasizes software performance as crucial for profitability. Tesla's ability to expand its autonomous-driving system across markets is a key factor in its valuation, according to Goldman.

Tesla (TSLA) shares dropped 5% as investors assess the gap between its current EV business and Cathie Wood's long-term autonomous-driving thesis. Ark Invest recently bought $50M in TSLA shares. Wood's outlook hinges on robotaxis, with a projected market value of $8T-$10T and TSLA shares reaching $2,600 by 2030. Tesla began selling Cybercab fleets for robotaxi networks, tying revenue to ride activity. The stock trades at 12 times sales, a premium to other automakers.

Tesla (TSLA) reported Q2 revenue of $28.24B, up 25.52% YoY, beating estimates by 7%. However, operating income fell 57% and free cash flow turned negative due to $25B capex. FSD subscriptions grew 56% to 1.48M. Analysts are split on TSLA, with 22 Buys, 19 Holds, and 5 Sells. The stock is down 21% YTD.

Tesla's demand for ESS batteries is driving competition among South Korea's top battery makers. LG Energy Solution, Samsung SDI, and SK On are expanding production to supply Tesla's Megapack. LG's Michigan plant and Samsung's Indiana plant are key sites. SK On has contracts with U.S. firms. South Korea's ESS tenders also present growth opportunities, with Samsung SDI and SK On leading recent awards.

Tesla launched driverless Cybercabs in Austin, facing a safety inquiry and a 5% stock drop. Uber's London robotaxi service, with Wayve, retains human oversight. Uber also cut 3,300 jobs to fund its robotaxi shift. China's Baidu faced a nationwide permit freeze after a robotaxi malfunction, with a study showing income drops for local drivers.